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Gold Bugs Index Testing Critical Price Support

ByChris Kimble
Published 02/17/2021, 10:04 AM
Updated 07/09/2023, 06:31 AM

Gold Bugs Long-Term Monthly Chart.

Last year’s rally in the price of gold brought renewed excitement to gold bulls (and gold bugs).

And it all makes sense.

A pandemic, political unrest and lots of money being handed out.

But gold fizzled out in late fall after a big rally. And it’s been trading sideways to lower ever since. This shows up in the today’s long-term “monthly” chart of the Gold Bugs Index. We saw a big rally hit a long-term support/resistance line at (1) and reverse lower at (2).

This reversal lower, though, is within a near-term bullish up-trend channel. And HUI is now testing its up-trend support line at (3), along with lateral support (marked by its 2016 highs).

Gold bugs do not want to see a break of price support at (3). Such a breakdown would be bearish for gold prices. Stay tuned.

Latest comments

Forget gold. Buy silver. Gold as a metal is more than plentiful. Nobody destroys it. As Warren Buffet said: "I don't get it. It's dug out of the ground, processed, bought and then put back in a hole in the ground, where it costs money to guard it". Silver, no matter what the price suggests, is as rare as gold (1:1) and is constantly being consumed (i.e. destroyed forever) in industry such as: weapons, electronics like solar panels, telecoms (phones, 5G infrastructure), medicine, jewellery that people dispose of when broken. The vast majority of silver mined since the days of the Pharoahs has been lost forever, while almost all the gold is still with us. The fugazi that is the surpressed silver price is about to end. Expert opinion points to 24 February. Get in before the price explosion
I agree that silver is the best play, but let's not forget gold is used in electronics as well, albeit not as much as silver. I don't pay anything to store my gold in a hole in the ground, and I understand Buffett doesn't like gold but I think it's for different reasons. I agree 100% silver has been long suppressed but without a doubt, gold see some green as well during the silver break out. even if just because people freak out over the silver price if for no other reason
It doesn't like gold, but gold actually returned 33% year in the last 20y (like it or not). And Alun is missing the point that the small amount of gold in use in the electronics is so tiny that is not worth reciclyng it. And, amyway, gold and silver are tied together by a somehow narrow trading ratio.
chris sir what expectations about gold down how many down
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