The gold sector as represented by $HUI is on a long term buy signal.
Long term signals can last for months and are more suitable for investors.
The gold sector as represented by $HUI is on a short term sell signal, correction is in progress.
Short term signals can last for weeks and are more suitable for traders.
COT data on gold is favorable for overall higher prices.
COT data on silver is also favorable for overall higher prices.
The current decline appears to be corrective.
The big picture remains the same as the multi-year bottoming pattern continues.
The breakout earlier this year remains in play.
USD
The bigger picture on the dollar has become clear these past few weeks as an ending diagonal is near completion.
Summary
- Long term – on buy signal.
- Short term – on mixed signals, correction is in progress and may be ending.
- Gold sector cycle is down.
- COT data is favorable for overall higher metal prices.
- Maintain positions and stay the course for now.
Disclosure:
We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.