Gold investors are getting a nice Valentine's Day gift today, as the precious metal continues to act like the 2.5 year bear market is now in the past. Gold successfully re-tested the $1,180 June 2013 lows in December 2013, and hasn't looked back since. Today gold is trading at $1,315, over $100 off those bear market lows. Recent market action is significant. If the bear market in precious metals is over, then the bull market is back and gold should move to recapture the all time highs in the not too distant future. However, there is still work to do. We first need to see a weekly close above $1,525 to confirm the bull trend. After that, $2,000 should fall quite quickly. Patience will be rewarded.
The gold mining stocks, which have suffered tremendously over the last two years, are sensing that the works is over for the sector. The miners have been among the strongest performing stocks in 2014 year-to-date and I expect that trend to accelerate as the year progresses. Fortunes will be made in the next five years in this sector, as the gold bull market accelerates higher.
If you would like to learn more about the gold market and the gold mining stocks, please get in touch. Happy Valentine's Day everyone!