Editorials

5 Things That Precede Major Bottoms in Gold

The recent weakness in Gold and gold mining stocks is not over. In fact, we are worried about another leg down getting underway. If that comes to pass, we are positioned to profit from it. But I digress. Long-term oriented investors and speculators should be aware of the near term trends but they … Continue reading “5 Things That Precede Major Bottoms in Gold”

Gold Stocks are Not Close to Bottom

It has been a rough year for gold stock investors. Since Gold failed to break to the upside and the US Dollar bottomed, gold stocks have been in a strong downtrend. In September they hit two and a half year lows. The oversold condition since then has been corrected but that rebound has … Continue reading “Gold Stocks are Not Close to Bottom”

Stronger Dollar is Bullish Catalyst for Gold

The US$ index is breaking higher. Its trading at 96.41 as we pen this. A daily close above 96.61 marks a new 52-week high and puts the dollar in position to eventually retest its bull market high at 104. If this strength continues then the relief rally in precious metals could be over. … Continue reading “Stronger Dollar is Bullish Catalyst for Gold”

Checking Gold Stocks Valuations

It’s no secret that gold mining stocks are historically cheap and have been for several years. Traditional metrics like price to cash flow and price to book value showed that gold stocks in late 2015 were at arguably their cheapest points since the start of the bull market in the 1960s. Other metrics … Continue reading “Checking Gold Stocks Valuations”

A Bottom in Gold but not THE Bottom

Gold has struggled to rebound despite an extreme oversold condition and extreme bearish sentiment. Nevertheless, conditions for Gold have not worsened in recent days. In fact, Gold as well as gold stocks appear to be basing for a potential rebound into the holiday season. While some gold bulls expect a major bottom, we aren’t … Continue reading “A Bottom in Gold but not THE Bottom”

Gold Stocks Remain in Downtrend but Uranium Stocks on the Cusp of New Bull Market

Gold stocks failed to breakout in the spring and then brokedown to multi-year lows by September. As autumn beckons, the precious metals sector at large is very oversold and could be starting a rebound. However, the fundamentals are not yet in place for a new bull market. They will be when the Fed … Continue reading “Gold Stocks Remain in Downtrend but Uranium Stocks on the Cusp of New Bull Market”

Gold Miners Setting Up for Big Rally

The recent rally attempt of the gold stocks fizzled out as the December 2016 lows failed to hold. Now the miners are making new lows. As they pine for the next support they figure to be even more oversold as more bulls throw in the towel. These are the conditions needed to engender … Continue reading “Gold Miners Setting Up for Big Rally”

Upside Targets for Gold, Gold Stocks & Silver

After a vicious selloff precious metals have stabilized. Its not a surprise given the breadth and sentiment extremes we noted and had predicted earlier. Although recent gains have met some resistance, the immediate path of least resistance should be higher. Let’s take a look at the key support and resistance levels for the metals … Continue reading “Upside Targets for Gold, Gold Stocks & Silver”

Gold Stocks Crash! Now What?

Last week GDX and GDXJ were down almost 12% at their lows on Thursday. Since then, they’ve recovered but only a tiny fraction of recent losses. The crash did result in the miners reaching an extreme oversold condition while trading around long-term support at their December 2016 lows. It was the perfect setup for … Continue reading “Gold Stocks Crash! Now What?”

Gold Stocks are Not Too Oversold Yet

In recent days Gold has been more oversold than the gold stocks. Entering this week, the gold stocks were fresh off a major technical breakdown. An upside or downside break can lead to a market stretching beyond what typically qualifies as overbought or oversold. After Monday’s selloff, the gold stocks are hitting oversold levels but … Continue reading “Gold Stocks are Not Too Oversold Yet”