The last seven days have been a roller coaster for precious metals, but gold has been bouncing recently. However, I want you to pay close attention to the broken trendline.

Gold Chart.

Specifically, we are coming up to the underside of that broken trendline. I believe that will be an important level of resistance. If it manages to overcome it, a vastly more difficult area to overcome will be the price gap I’ve tinted, because there is a mountain of overhead supply just above it.

Gold Chart.

I will say, however, that miners look to be in better shape than the metals, with more room to the upside. That trendline I’ve drawn has proved to be meaningful resistance (left 60% of the chart) and, now, support (right 40%).

GDX Chart.

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