Gold is beginning to look attractive to me.
First, the gold futures charts
Gold Futures, Current Contract in Front
Gold tests the purple VWAP from the ATH after finding support at the yellow trendline from the high.
The price is also above a rising 50 and 200 DMA, which signals the beginning of an uptrend.
Gold could be a Stage 1 Accumulation leading to a Stage 2 Mark Up phase satisfying the gold bugs.
It is too early to get excited; however, I am bullish above this VWAP.
Let’s look at the Gold miners.
GDX - VanEck Gold Miners ETF
The gold miners are lagging gold and still below the 200 DMA.
I have a thesis that proxy stocks will lead the commodity.
If this is correct, GDX will catch up to gold before we see a significant move.
Let me know your thoughts.