Gold's "blue sky" = RED5 " blue sky ".
Technical analysis 101 states that chart formations tend to go in the direction of the underlying trend.
The first order factor for gold companies is the (gold) commodity price trend.
The pre-NY gold surge above US$1800 is encouraging, and a break above US$1900 would be very bullish. Some are predicting US$3000+.
The dominant factor is overall state of the whole stock market(s) .... the Wall St trends are looking ominously bearish, with the FAANGs looking increasingly toothless. The bullish (pseudo) employment figures, are once again at best, a lagging indicator and probably very misleading.
As long as markets don't crash, gold can rally .... BUT
If Wall St crashes, every other market will fall, (including commodities) .... just like when the biggest climber in a group whose roped to all the other climbers falls ... so, if you feel like the big boy is going to fall, cut the rope and seek shelter.
Gold in the first instance will go down with the stock market, but can recover, like the post GFC rally where the US$ POG almost tripled, and the POG reached new nominal highs (not inflation adjusted). Optimistic economic forecasters who believe that economic growth is the cure-all, are very bullish on commodities and PMS, even if a "correction" is unavoidable.
Another "trendy" trend will be "green steel" "green battery metals" and "green gold" etc. Be like Twiggy - save the planet, and get richer.
Although the GDX and the GDXJ have bounced off extreme lows, technically it still looks like a bear rally, and until the downtrend line is broken decisively, one can't assume the bear market in gold stocks is over - BUT if the IOUSA fund managers come back from their winter wonderland ski holidays, bullish about gold, and not convinced a crash is coming (and hence resume selling the market) then the bull rally in gold stocks will get "volume confirmation", and we're off to the races.
