Gold is starting to turn bullish again and gold stocks are ready to rally.
After briefly eclipsing the $1600 level, gold pulled back to the $1530s before moving back above the key $1540 support level. Looking like it could move back to $1525, gold instead began moving back into the $1560s where it looks poised to now make another run to $1600. A sustained period of time in the $1530s could have fueled further selling, but the fact that it turned north again as quickly as it did suggests that buyers have returned.
Gold stocks trail the price of gold by nearly 6% in 2020. I've asked the question before of if gold is overvalued or gold stocks are undervalued. I believe it's the latter and that there's 10% short-term upside in $GDX if gold hits $1600.