“Gold prices may be disappointed if and when QE3 is not announced. The rally has become parabolic in the last three weeks and a bearish divergence has developed,” commented Tom Pawlicki, MF Global metals analyst, reports Murray Coleman for Barron’s.
Jordan Roy-Byrne, precious metals analyst and trader, advises investors to “look for strength from the gold and silver stocks” while gold consolidates. “The large caps are quite close to a major breakout while the junior golds are not far behind,” Roy-Byrne added.
For more information on gold stocks, visit our gold miners category.
Direxion Daily Gold Miners Bear 2x Shares