Gold and Gold Stocks Setup for Post-Fed Rally

Gold and gold mining stocks have been very oversold but have struggled to rally. The sector looked to be starting a rebound until Friday’s decline which pushed Gold to a new low. However, positive divergences remain in place as gold stocks and Silver remain above their recent lows. While the Federal Reserve could say something hawkish next week, the setup continues to favor a rebound in the precious metals sector rather than an immediate decline to new lows.