The Gold bulls are on the loose accumulating shares of numerous gold stocks in heavy trading. The Spider Gold Trust (GLD) ETF tracking the price of the gold bullion broke out of a key symmetrical triangle pattern yesterday and once again the big $1000 level is within striking distance.
While there are tons of gold stocks to take a close look at some of our favorites include Goldcorp (GG) and Barrick Gold (ABX) which today are both looking to close at fresh 52-week highs, Randgold Resources (GOLD), and Agnico Eagle Mines (AEM).
So why is Gold soaring now?
Historically speaking September has been a very positive month for Gold. Frank Holmes, CEO and chief investment officer at US Global Investors noted that gold prices have risen in 16 of the 20 Septembers since 1989. More economically though investors fear inflation is looming in our future and even though the real risk as of late has been deflation there are many investors accumulating gold stocks now in expectation for inflation to come.
Personally we feel the best way to play any investment is to go with the trend and keep a close eye on the technicals. This week Gold breaking out of its symmetrical triangle pattern is a buy signal and now there is strong bullish momentum to possibly continue to push prices higher.