All Aboard! A New Bull Market in Gold May Have Started Already

FSAGX

The Fidelity Select Gold Fund (FSAGX, last change: 2.50%) is the best performing sector fund today in our daily technical analysis survey. We reported on August 31, that the conditions are ripe for gold stocks to shine again, and yesterday we observed the breakout for FSAGX. Based on the technical indicators, we believe now that gold mining stocks have reversed course and are no longer in a bear market. The strength of the breakout and the high volume of buying shows that the conditions are set for the start of a new bull market for gold. We must caution, however, that investing in gold stocks and the commodity itself carries above average risk due to high historic volatility and frequent reversals.

 

Technical analysis screens are provided by FidelitySignal.com 

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