In view of the fact that we expect mining stocks tolead the way, we will start with the HUI index of gold miners. Price has just finished a test of the January 2017 breakout. The green arrow points to confirmation of the uptrend that began at the blue arrow. This is referred to as an ‘ABC bottom”. The target for this breakout is 365. The supporting indicators are positive with room on the upside.
This chart, courtesy of Goldchartsrus.com, shows the long-term trend in the US rate of inflation, along with the short-term trend in red. Both long-term and short-term rates are rising. This trend provides energy for gold and silver to rise.
Featured is the long-term gold chart in log format. Price has found support at the 150 month moving average. A breakout at the $1300 level will be very bullish and will set up a target at $2100.
Featured is the US dollar index. Price appears to be carving out a 'head and shoulders' pattern. The set-up will be confirmed
- Source, Sprott Money, Read the Full Article Here