Yesterday I suggested precious metals (via ETFs such as GLD, GDX, and SLV) as good buys. That is working out nicely today. As of this writing, the $XAU is up nearly 4%.
Precious metals is a tough one for me, because there are opposing bullish and bearish camps which I both respect. On the bullish side is Gary Savage, whose reasons are a combination of both technical and fundamental, and his view is definitely long-term. On the bearish side are the fellows at Elliott Wave (as well as molecool from Evil).
Looking at the futures chart for the commodity gold itself, it could go either way……..
The green lines suggest two very bullish developments: (a) the puncturing of the psychologically-important $1,000/ounce level; (b) a nice inverted H&S pattern. The red lines show gold slipping under its Fibonacci fan line and heading toward the bottom of the channel (lower red line), which is in the high $600s that EWT has been predicting.
I remain long gold and silver, but I'm not steadfast about it.