Gold has been consolidating since reaching a high near $1,800 per ounce in early October, and MoneyShow’s Tom Aspray goes prospecting for buying opportunities should the yellow metal finally break out of its current rut.
As gold prices have grinded lower from the early October highs and stocks have skyrocketed, the interest in gold has continued to decline. The flurry of bullish recommendations in late September was in sharp contrast to the high bearish sentiment evident last summer.
The high-volume selling last November was a sign that the bears were back in charge and that the correction from the September 2011 highs was not over yet. As I noted in a look at the yearly charts, the Spyder Trust (GLD) did close up 6.84% in 2012 but still it was a disappointing year for gold investors.
Regular readers are likely aware that my long-term outlook for gold prices and the Spyder Gold Trust (GLD) has been positive for many years. Even though there are currently no gold positions in the Charts in Play portfolio, I see no change in the long-term trend.
A look at the monthly chart of gold prices and the weekly/daily charts of the Spyder Trust (GLD) suggests that there will be opportunities for gold investors in 2013 but further patience may be required. Going back to 1976, the seasonal tendency is for gold prices to top in February and then bottom in July.
Chart Analysis: The monthly chart of the Comex gold contract that goes back to 2011, uses the continuous contract that includes volume from all open contracts. The expanded view of the 2001-2002 period highlights the important low in 2001-2002.
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