There seems to be a lot of bearishness in the gold sector these days after it’s recent pullback, but when looking at these two charts there really is no need for concern. In fact, a pullback is exactly what this sector needed to attract new money that felt it was overbought. The first chart is a daily of the goldminers ETF, and you can clearly see how it bounced off it’s 50dma and closed a penny below it. Tomorrow will be key to see if the dip buyers emerge or if this is going to be a more serious correction. I would be a buyer here if we see strength in the morning with it carrying over into the close.
After it’s ascent over the psychological $1000/oz mark, gold could be consolidating for a larger move higher.
