Gold stock sentiment indicator.
While I am pleased to see gold have a nice rebound to over $1,800, as far as sentiment goes, it is in no-mans' land.
A potential low is 33% while a move higher is 60%.
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Does the XGD give us some idea of likely direction?
Not really. Also in no-mans' land. Support at 6080.
The recent pull back is useful as a launch pad to take out resistance that has been in place since last November.
As you can see, 6716 is a number to aim for that would almost certainly coincide with a break out in the price of gold.
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GOLD closed at 226.30 on Friday and overnight was a 1% move higher so a reversal is expected on the chart below on Monday or possibly Tuesday if gold goes on to challenge US$1,836.
I do expect a reversal and not a trend break. Could be bought about with a rise in the USD or fall in the AUD even if gold goes nowhere.
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Difficult to predict how gold is going to behave over the next couple of weeks but I do anticipate a rise in A$POG.
If this occurs with a fall in the AUD then gold producers may not go anywhere as hot foreign money exits the market.
Further falls are still on the cards and this will probably occur with a failure to take out $1,836. Could hang around the current price for a week.
Some producers are hitting resistance and these are the ones to watch. Still require a substantial move to break out.
Wish I could be more conclusive. The sector is coiled like a spring.
