Gold futures are currently trading just above the it’s very significant 200 Day Moving Average:
As you can see in the graph above, the 200 daily Moving Average has been a very important support/resistance point for gold in the last couple of years. When gold has managed to break through it, momentum has picked up dramatically in the direction of the break. Last time gold managed to break it from below, it started a multi month rally that lead to a rather epic rally in the miners as well.
Speaking of miners. GDX and especially GDXJ are still trading at the very end of a multi year edge pattern, which if broken to the upside could start a massive leg up granted gold manages to break through it’s Moving Average resistance:
- GDXJ (Junior Miners):
- GDX (Major Miners)
Now we just have to wait and see if a bullish break is sustained. If not, it will most likely lead to a major correction.