5 Gold Charts for Short-Term Timing

Includes: GDX, GLD, GS, SLV, XLF
by: Andrew Hart

Here are a few good charts to help conceptualize last week's record breaking rally in Gold. In my view, each chart supports further upside this week with a probable short-term high developing later in the week.

Of course it's hard to mention Gold without mentioning Goldman Sachs (NYSE:GS), the new market bell-weather, which has earnings Thursday before the bell. It will be interesting to see if Gold can continue its rally amid a larger financial rally or vice-a-versa (last week GLD gained 4.5% and XLF gained 6.65% an uncharacteristic correlation).

My favorite pics below are the CBOE Gold Volatility Index and the GLD Weekly with Acceleration Bands Signals. The 'Gold Vix' as it's called gives unique insight on Gold prices and similar the the traditional VIX can provide guidance on short-term reversal areas. In the chart below I'm looking for relative extremes in Gold Volatility on Bollinger Bands.

Finally, the GLD weekly chart is nothing short of awesome. With all time highs being made each day it would seem a reversal is near, however, if we close outside the upper Acceleration Bands this week, look out for an even larger weekly rally. Note the past signals and average length of holding.

Gold:Sliver Rally (GLD:SLV) with Bollingers

Top 20 Option Trade from Breakout Day (10/6) - LiveVolPro.com


GLD Weekly with Acceleration Band System

Gold Volatility Index (Gold Vix)with Bollingers