I saw a lot of people give up on gold and the miners last week after the gold price attack. As soon as the gold price breaks this downtrend line, miners and silver will break the manipulation and follow the gold price higher as well.
On days like today it may feel like you have missed the exact bottom which could be true but as you can see none of the lows have held since the June highs. GLD is generally the leader and has been the strongest area in the PM complex..
I promise you, I did not expect gold to comeback this fast. Gold is above the 18 day moving average, bias is up with higher highs and higher lows, momentum is overbought.
ETFs continue to sell, bringing this year's net sales to 6.79 million ounces, according to data compiled by Bloomberg. Total gold held by ETFs fell 6.3% this year to 100.3M ounces.
Gold has been weak because of fear of tapering and a strong U.S. dollar. While there were signs of an improving U.S. economy, even that is dissipating so that might be now helping gold.
