You know who the winners were in the first half of 2024 because H1 is in the history books (Plus I wrote about them last week!) But the best traders stay focused on the FUTURE not the PAST. And I’ve identified a sector that looks like it could be the NEXT one to see a big move higher.
Take a look at the MoneyShow Chart of the Week for July 8, 2024 below. It shows the PHLX Gold/Silver Sector Index, or XAU. The index dates all the way back to 1979. It tracks the performance of around 30 of the top gold and silver mining stocks in the world, including Newmont Corp. (NEM), Barrick Gold Corp. (GOLD), and Pan American Silver Corp. (PAAS).
Data by YCharts
You can see that precious metals miners were struggling earlier in the year, underperforming the averages amid worries about postponed Federal Reserve interest rate cuts and a strengthening dollar. But the XAU has come roaring back since then, and it’s now up around 16% year-to-date. That’s roughly in line with the S&P 500.
Moreover, the 50-day moving average traded up through the 200-day moving average back in April…and both MAs are trending higher. RSI and Stochastic indicators are supportive of the advance, too. If XAU can take out its high from May around the 150 level, precious metals mining stocks could be off to the races!
You can profit by buying the strongest underlying stocks in the index. Or you can target some of the ETFs that focus on this sector. The largest include the VanEck Gold Miners ETF (GDX) and the Global X Silver Miners ETF (SIL).
One other thing: I’m just putting the finishing touches on a gala report focused on gold, silver, and how to profit from this mega-move. Keep your eyes on your email and the MoneyShow.com website for more details.
