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GOLD has made a short term move over $1575 – does it have legs to run?

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Gold has made a short term move over $1,575 which is greater than the 20 day moving average a key level for many watching the yellow metal. This is pretty impressive with the move in the Dollar Index (DXY) +15bps this morning and on a big roll (For further insights into the U.S. dollar see - Dollar Index goes higher approaching major resistance ). The $1600 level is being watched closely for a place to break and run.

The Gold Junior Miners Index ( GDXJ , quote ) is up 5 straight days. No question there has been capitulating selling in last few weeks on strong volumes.

As we highlighted yesterday where we stressed recently gold miners are decoupling to the metal is taking place regardless of price, as many miners are putting their hedges back or stopping highly speculative projects which are heavy in Cap-X and low on visibility.

We are long Harmony Gold Mining Company ( HMY , quote ) and Gold Fields Ltd ( GFI , quote ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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