Editorials

Gold mining stocks as a whole have underperformed Gold since 2007. The GDX to Gold ratio from its 2007 peak to its 2015 bottom declined 80%.   The Gold price peak in 2008 was about where it bottomed at the end of 2015. That’s over seven years of a flat market coupled with steady increases … Continue reading

After nearly reaching an all-time high, Gold is correcting and consolidating. It needs some time to digest the recent surge before attempting to break to a new all-time high.   Since Gold is correcting and declined more than $150/oz, we can assume the miners, juniors, and silver stocks are lagging as they typically do.   … Continue reading

Gold is correcting a short-term overbought condition.   Gold surged nearly $300/oz in less than six weeks and almost touched its all-time high. It was a logical point from which a correction could begin.   This is only the third time in Gold’s history in which it corrected after reaching or approaching the previous all-time … Continue reading

Gold looks to be in the midst of a historic breakout.    I have written quite a bit about Gold’s super bullish cup and handle pattern, which has a measured upside target of $3,000 and a log target of roughly $4,000.   To understand the significance, one should study similar historic breakouts in Gold and … Continue reading

Buy the rumor, sell the news.   Traders were front-running the invasion.    They pushed Gold from $1840 to $1975 in eight trading days. On Thursday, the day of the invasion, Gold advanced from $1910 to $1975 before reversing nearly $100.    Gold has closed the week below $1900 and figures to close the … Continue reading

Gold broke out of its triangle and reached $1900. It was able to lift the gold stocks up and away from critical support.   Since last Friday, Gold surged $70/oz. GDX gained 13%, while GDXJ gained 11%.   After three tests, GDX held support at $29-$30 and rebounded to an eight-month high near $35. … Continue reading

We have spent quite a bit of time writing about the start of Fed rate hikes as a catalyst for the Gold market.    Gold bulls and gold bugs have latched onto this potential positive but without the qualification.   The Fed starting a new rate hike cycle is usually bullish for Gold because … Continue reading

There’s good news and bad news.   The good news is that gold stocks and precious metals at large are approaching a major bottom.   The bad news is that history shows potential for sharp selloffs in the weeks to a few months preceding these major bottoms.    Here is a look at the … Continue reading

Gold and gold stocks showed unexpected strength last week, and although they closed the week in a disappointing fashion, their larger outlook is growing increasingly positive as multiple catalysts abound.   We have touched on the Fed rate hike cycle catalyst.   In seven of the last eight rate hike cycles, Gold and gold … Continue reading

History shows that whatever the ongoing regime is (be it inflation, disinflation, or accelerating inflation), Gold usually bottoms around the start of a Fed rate hike cycle.   Considering the five most significant bottoms in the last 50 years (1971, 1976, 1985, 1999, 2016), we find that all but one coincided with the start … Continue reading