Gold: Quick Review

Now that GDX is up 11.2% over the last 3 sessions.Miners looking for gold prices clearly above $2000/2100 to start catching up. The sector is extremely undervalued or shall I say bombed out.. not much sellers left..   

With gold breaking out of a 13-year long consolidation pattern and above the massive 3.5-year resistance zone at 2075, it looks like it could run towards approx. $2535 in the next Cycle. That should spark some really nice action in these senior miners which are the first ones to move in the sector.. juniors and explorers will come later..

Longerterm I do see higher gold prices too.. of course.. but for now lets keep this simple.. Best case approx USD 2,535 in the next few months or even weeks.. then deep pullback.. The zone around 2075/2100 definitely will be tested at least once, no matter how high it is running now..

In any case, we must not forget the open gap at $1810... as written, the closing of that gap might only occur in an extreme deflationary phase... which can of course happen if there is a sudden banking and liquidity crisis..