Posted By Isaac Nuriani
Gold bears are those loathsome creatures who constantly badmouth our favorite metal, doing whatever they can to drive prices down. It’s an eternal struggle, but right now those four-legged predators are hightailing it back to their caves, where I’m guessing they’ll take some time to lick their wounds and have a nice snooze.
The event that triggered my delighted reverie occurred on February 16, when gold notched its highest finish in more than three months. April gold settled at $1,241.60 per ounce, its highest close since November 10.
Both fundamental and technical factors are pushing gold higher right now. On the fundamental side, we see the continued weakening of the U.S. dollar and bond yields, both positives for gold prices. When the dollar is weak, gold holds its own. Even equities are taking a well-deserved break. Technically, the Gold Miners Index (GDX) has moved above its 200-day moving average, and gold sentiment finally tipped from bearish to bullish. In fact, the GDX posted gains for eight weeks in a row, an unprecedented winning streak since the index’s inception. Gold has retraced more than 50 percent of its post-election losses, a fact that should throw cold water on any remaining bearish ardor.
Whenever the GDX takes a small pause, astute gold bugs take the opportunity to buy more gold metal. GDX corrections have been short and shallow, but each time they occur, some bear pokes its nose out of the cave in excitement. That’s the time, friends, to pull the trigger and put the miserable marauder out of its misery, so to speak.
Let’s you think the gold bugs are getting irrationally exuberant, note that bullish sentiment is sitting at only 60 percent, far from the levels that denote a bubble. In fact, the current reading is supportive of prices. Sentiment bottomed out in January and hasn’t looked back since.
Now, as I empty my bourbon snifter, I also smile with pride at the many savvy investors who have opened an Augusta™ Gold IRA you can SEE, TOUCH & HOLD™ from Augusta Precious Metals in recent months, just in time to take advantage of the next up leg. (If you can’t hold it, do you really own it?™) The Augusta Gold IRA allows you to collect selected IRS-approved gold coins with pre-tax money, because you take a tax deduction for your IRA contributions.
Don’t forget, you can continue to make 2016 contributions until April 15, so trust Augusta to do a little gold bear hunting for you and act today! Find out more by calling 855-242-4121 for a free gold IRA guide or click here to get the guide by email. Don’t forget to ask about current free silver deals!
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