I hope everyone had a great weekend and is now ready for another week of trading. I have put together a few simple charts to show you what we could see with prices in the near term. While I do not predict future price movements (because it is impossible to always be correct), I do like to know what could happen and be ready to take action when something significant occurs.

The five charts below quickly summarize what I am seeing in the market currently.

Gold Stocks – HUI Monthly Chart

Gold stocks have been performing very well this year. As you can see from the chart stocks are getting squeezed into the apex, which generally creates explosive moves. We could be months away according to this chart so don’t get trigger happy just yet.

A breakout to the upside will most likely trigger a very large rally. But if prices break down then I expect to see gold stocks pull back to new yearly low.

Gold Bullion Market

GLD Gold ETF – Gold Bullion Prices – Daily Chart

Gold has been trying to move higher the past 4 weeks and is having a tough time. With any luck gold will bounce higher Tuesday or Wednesday starting a new rally higher. If prices do not hold, up I figure we will see a sharp price drop which could go all the way back down to the $800 level within a couple months. I am currently long gold and will continue to hold it until I see a technical breakdown on the chart.

GLD ETF Trading Signals