Gold Is Extending Its October Run

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The correction in the Dollar helped gold as the Gold SPDR GLD advanced over 5% from its early October low. The first chart shows GLD breaking the August trend line and moving back above the support break. In an interesting twist, gold is ignoring weakness in the Euro today and moving higher. While I am not sure if this will last, I would mark first support at 118 and stay positive on gold as long as this level holds. All bets are off if the Dollar breaks out to the upside.


The second chart shows the Gold Miners ETF GDX forming a pennant within a downtrend. Pennants are typically continuation patterns and a break below 20.5 would signal a continuation lower. However, gold is on the rise this month and GDX did form a harami on Friday-Monday. A move above 22 would break pennant resistance and be bullish.




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