From Gold Scents:
... I think we have all the confirmation we need at this point to conclude that gold's intermediate cycle bottomed two weeks ago.
As I pointed out in the dollar section above, this should also mark a yearly cycle low and a B-wave bottom in the gold market. I'm about 99% positive Friday's rally was the kickoff of a brand new C-Wave advance.
That being said I wouldn't expect gold to rally straight up to new highs this summer. It may test $1,900 during this new intermediate cycle but I think gold is still going to have to consolidate for most of this year before it can breakout to new highs. My best guess is probably next spring before any sustained move above $1,900.
This means I think the bear market in miners has probably ended. As everything starts to rally out of its yearly cycle low (and the CRB out of its three-year cycle low) the biggest gains are going to be made in the sectors hardest hit during this correction.
Without a doubt that was mining stocks. At the lows two weeks ago miners had reached levels of undervaluation only seen one other time in history. That was at gold's eight-year cycle low in the fall of 2008.
As you can see in the chart below miners rallied over 300% as...
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