A key index of gold stocks is hitting its first level of major potential resistance since its false breakdown to all-time lows in January.
by Dana Lyons
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Flashback to January 26 of this year. The PHLX Gold/Silver Index, or XAU – the longest running index of gold stocks – was recovering from its breakdown earlier in the month to all-time lows. That day, the XAU was testing the breakdown level around $43. Our Chart Of The Day and accompanying post linked above queried “Will this test of the breakdown level lead to a false breakdown, or the start of a new leg down?” Well, 3 months and over 100% later, that answer couldn’t be more clear.