Top Gold stocks to invest in 2016

Gold on the verge of a breakout Rally

[color-box color=”blue”]Gold has closed above 1230 and indicating that a bottom is in or that one is close at hand.  The trend has turned neutral from negative thus giving Gold a much-needed boost to potentially test the 1350 ranges. India however, dealt the gold markets a negative blow by maintain the tax on Gold and suggesting that they would increase it slightly.   This development could be overshadowed by a more positive development that concerns central bankers.  Central bankers overall have been purchasing Gold rather aggressively over the past 24 months. [/color-box]

Must Read: Stock Bull Market over; Mob Psychology says no

The trend in the dollar, on the other hand, is neutral, but not too long ago it was up (bullish), and until it turns negative, the outlook favours a resumption of the dollar bull.

Euro; the trend in the Euro has turned neutral from negative and until it becomes positive, all rallies are destined to fail. The Euro and Gold tend to trend in the same direction, and as the trend in the euro is still neutral, we have to assume that Gold will start to face some headwinds soon. However, there is a silver lining; Gold and the dollar have trended in unison in the past and hence a weak euro does not mean that Gold cannot continue trending upwards in the face of a stronger dollar.

Must Read:  Negative Interest wars could destroy Gold

There is one more problem for Gold, and that is negative rates; negative rate wars have started and in such a low-interest climate Gold does not tend to fare well. Thus, it will be interesting to see how Gold holds up when negative rates strike the U.S.  In the meantime here is the list of some of the strongest Gold stocks. 

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Top Gold stocks to invest in 2016

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Video of interest: Stock markets economy rarely trend in unison

 

 

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