Gold is setting up for CPI. $GDX $GLD – August 13, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. Tomorrow we have the all-important CPI report, and I definitely think if it’s anything like today’s PPI report we should keep an eye on gold and the gold miners.
We can see GDX ( NYSEARCA: GDX ) here on the screen, setting up exactly how it did from May until the end of June. That’s where it built this beautiful downward-sloping channel. We had a break up above these key moving averages and gold made a new high for the year.
We have been consolidating since around the middle of July. And now we have just hit this top downward-sloping trendline, so we are right at resistance. If CPI comes in under expectations we could see gold break out through this level, close above that level, and potentially get up here to the highs right around 39.50.
So the gold trade is definitely one we’re watching over at StockMarketMentor.com. Whether you’re trading some of the individual miners or just looking at GLD ( NYSEARCA: GLD ), definitely keep an eye on gold for a positive reaction following the CPI report.
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