A Double Bottom for Gold?

Source: Minyanville, Lance Lewis (4/20/09)

". . .odds are that the metal has double bottomed on the charts. . ."

Spot gold is now up over $18 and is nearing its near-term downtrend on the charts. As I noted on Friday, sales of the yellow metal on the gold ETF (GLD) have only come at capitulation points for gold since the Fed began to explode its balance sheet back in September of 2008, when investor demand for the yellow metal accelerated. And we obviously had one of those capitulation points on Thursday and Friday of last week.

In light of that capitulation, odds are that the metal has double bottomed on the charts if this downtrend is taken out sometime over the next few days. If so, then odds are that the correction since the February peak is now over, which sets up another near-term attempt at breaking out above $1,000.

The overall bearish sentiment that currently pervades the gold market is also very constructive for a rally.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."