It looks like SPDR Gold Shares have ended their 10% correction from the end of February. A new rally may be on the way.
There are worries that one of the biggest consequences of more easing is inflation.
As investors look to the Fed chairman for direction, the immediate one is upward price momentum.
Many have held out hope for gold-mining stocks, but negative technical signals actually warned of this week's high-volume decline.
In an election year, politicians are likely to avoid tough choices and go for the easier solutions, which are good for the yellow metal.
Recent price action in gold futures and ETFs suggests heightened volatility and further declines, making the risk prohibitively high now.
The lightness of the correction in gold is very bullish for the metal as well as its ETF vehicles, and as this drought ends, the next big leg up may soon begin.
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All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.
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