2021: Year of the Next Gold Rally
Stocks stumbled to start the new year.
But gold is already posting an impressive breakout.
Precious metals were quick out of the gate early Monday morning. Gold pushed toward $1,950 for the first time since early November, while silver rocketed higher by more than 4%.
I like how gold is now clearing this range and moving back toward $2,000. And it’s still about 7% off its highs – even after Monday’s powerful rally.
Now that we’re seeing a major breakout in gold after five months of consolidation, we’re looking for some follow-through to the upside.
Check out my recent appearance on the TD Ameritrade Network where I reveal my favorite way to trade gold right now…
Keep it In the Money,
Alan Knuckman
Editor, In-The-Money
Chart of the Day: Energy snaps back
Precious metals aren’t the only commodities starting the year off hot.
Just look at crude…
Oil is rocketing higher this week, topping $50 yesterday for the first time since late February. That’s right – crude is now officially recovered to pre-pandemic prices.
Naturally, beaten down energy plays are also starting to perk up.
Energy stocks received little love from investors in 2020. And they have a lot of work left to do before they will even come close to their highs from just one year ago. But we are finally beginning to see some buyer step in here.
Check out this chart of the Energy Select Sector SPDR (NYSE:XLE):
Yesterday’s 6% gain could spark XLE to attack its early December highs. From there, the sector still needs to rally 10% to reach the top of its summer 2020 spike.
Comeback moves like these can be especially fast. They can also fail spectacularly. I’ll be watching to see if XLE can successfully clear the top of the green line before trying to make a move on these names on the long side…
— Greg Guenthner
