Below is a chart of the North American Junior Gold Mining Index, all the smaller gold miners put together. It gives us several important clues to the future. First, there is a massive reverse head and shoulders pattern in play right at the time of the year when demand is strongest (August to February). Second, the RSI is not over-bought at present so there is good scope for a rally right now, similar to the one in June. Third, the MACD reversed before the price turned up last year and has continued to make higher lows.This is bullish. Fourth, and most important, is the volume explosion coming into this year. It is the ultimate indicator of a change of trend
Next is a gold price chart. First, you will not that the chart above is a lot more bullish than the chart below. It is a good sign when the miners lead the gold price. Second, The breakout from the 200 day moving average was a major event. The 200 day moving average is the ultimate guide to whether you are in a bull or bear market. Gold broke through it earlier this year, fell back, broke through a second time and is now retesting it. From here I will predict we will move away from it quite strongly. Third, the MACD is also making higher lows so is confirming the trend. Fourth, the shape of the chart is a classic cup and handle formation, or rounded bottom. A rounded bottom is the strongest indicator of a change of sentiment in the market. It is slowly emerging consensus that the trend has changed permanently. Strong hands now control the gold price and that is why we are now seeing weekly price smashes in out of hours trading by the central banks to try to contain the price.
Finally, here is the silver price. It tells much the same story