Next week will be very important. Will Gold perform Bullish Head and Shoulder Reversal pattern with LS at 777.70, Head at 739.8 and RS above 750? If the market will rally further into election after painted not without PPT help a Double Bottom reversal and public will listen to Mr Buffet, Treasuries will continue their bleeding and US Dollar will go down from its recent high. Gold is still holding the best in a recent financial melt down and at least part of the money will be allocated to its real safe Heaven status.
On another hand even Major Producers are beaten into the ground with General Equities as their is no tomorrow. They are screaming Buy if the Gold will hold at its Reversal.
If you Buy this theory GDX will be the best choice without stock picking efforts, othervise biggest in the sector Barrick Gold ABX and Newmont NEM will get attention first, Yamana Gold AUY is highly leveraged to copper recovery on Inflation Play in Americas.
Market will be surprised in this scenario by earnings Power of Gold producers now: Gold is holding well and all other cost base commodities with the most important OIL went down. Companies should show great margins from this last Q of operations.
Once it will show some life greed will come back into sector and the the only supply of Reserves will come into play - Juniors which are given for free right now like TNR Gold TNR.v and Bravo Venture BVG.v.
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