The Fidelity Select Gold Fund (FSAGX, last change: 8.62%) was the largest-gaining Fidelity fund in the market rally that followed the Fed’s decision about not dialing back on the QE3 asset purchase program. The chart pattern of higher lows confirm that gold stocks are no longer in a bear market.
We identified the end of the bear market for gold stocks in the blog post on August 16. The bullish trend continues for the gold mining sector and the Fidelity Select Gold Fund (FSAGX, last change: 1.65%) is one of the best mutual funds available for investors to participate. While the general stock market is weakening and we are heading into the often volatile fall season, FSAGX may be a good choice for investors seeking capital appreciation.
The chart pattern for the Fidelity Select Gold Fund (FSAGX, last change: 5.22%) has turned positive and we think that the sector is in the beginning stages of a new bull market now. FSAGX is making higher highs and higher lows, while clearing the 100 day moving average too. We wouldn’t be surprised to see a pullback in the next few days after the recent strong performance, which should provide investors with new opportunities to establish positions.
The selling of gold mining stocks accelerated today. As the result, the Fidelity Select Gold Fund (FSAGX, last change: -4.92%) has reached a new 52-week low. The panic selling of gold stocks is not well explained by the news. This should serve as a red flag for investors who are trying to pick the bottom to go long in gold. We will not consider investing in this sector until prices stabilize.