With the US Dollar showing a glimpse of life here and there and high rising gold stocks beginning to slow down, could the gold play be done for a while? There are several gold stocks that you could use to measure, but I’ll use the two that I have followed the closest:
Gold ETF (GLD)
Over the past six months, GLD has seen some great growth in price; however, the chart shows that this stock may have topped for some time. Since hitting its 52 week high, GLD has created multiple lower highs and sunk down below the 50 day moving average.
Yamana Gold (AUY)
The stock has already come down considerably from its 52 week high of $19, but now an interesting head and shoulder reversal shows the stock potentially dropping even more. It could go all the way down to $7.
Final Conclusion
The “Gold Play” definitely seems cold for now. Many of the stocks have seemed to come off their recently formed 52 week highs and show no signs of reversing back up.