Gold and gold mining stocks drops and gold are now at 1325 from 1400 last week. Gold and miningstocks have been in a bearish market for a long time now, and seem to bottomed in june. We can see a higher low in the chart, and we are probably in a consolidation period for the HUI index. We will then see some moves after next weeks FOMC meeting.
Maybe we will see the bottom before the meeting and 280 in the HUI index is a level we must take closer look at. A very important level. If it breaks thru that level, then it`s time to buy in the bull market. But before that we will probably see a higher low.
I watched CNBC and the intervju with their gold specialist Alan Gartman. He got bullish last week, but now he have turned around and says he turned bearish.
Wall Street Journal had a survey and asked market participants about the FOMC meeting. Two-thirds of the people said that they expect FOMC to launch tapering next week.
Bart Melek, vice president and director, head of commodity strategy, rates and foreign exchange research at TD Securities says gold will trend down below $1,200 as 2014 unfolds. Take a look at the HUI index below:
