Editorials

Precious Metals began a long anticipated correction a few weeks ago but it was somewhat interrupted by news of Warren Buffett buying a stake in Barrick Gold. The Buffett bounce has passed and the correction could reassert itself as the path of least resistance remains to the downside.  The weekly chart we posted a few … Continue reading

A few weeks ago, we wrote that a correction was imminent.  Wrong choice of words. However, we were just too early.  As we write this article, GDX and GDXJ have corrected 8% and 10%, respectively. More downside is needed to confirm a correction is underway, but I think that will happen soon enough. There are … Continue reading

What we wrote in May applies again. In a bull market, you buy and hold. Now is not the time to buy. A correction in precious metals is imminent and could be underway as you read this. The signals are overwhelming. Gold and silver miners started the week by gapping up on Monday and Tuesday. … Continue reading

Trying to assess the potential for a correction in precious metals (and in miners especially) is quite tricky, given the current context. Last week we argued that markets often make powerful and sustained upside advances following significant breakouts. In this context, an overbought condition can become very overbought and persist for a while, during a … Continue reading

Precious Metals have not broken out. Not yet. Gold closed the week at $1790 and Silver at $18.32. They have yet to breach critical resistance levels at $1800 and $18.75.  But the junior sector has broken out.  Both GDXJ (juniors ETF) and GOEX (explorers ETF) eclipsed 7-year resistance and made new daily and weekly highs.  … Continue reading

Gold has broken out from a two-month-long consolidation (from $1680 to $1770), but the other precious metals markets have not confirmed Gold’s strength. The gold stocks (GDX, GDXJ) remain below their May highs while Silver remains below significant, multi-year resistance around $18.75. Silver closed Monday at $18.06. Furthermore, Gold, when priced against foreign currencies, has … Continue reading

The precious metals sector remains in correction mode, although Gold is pushing up against resistance. The worst of the correction is probably over, but it may continue (and specifically for the gold stocks) as a consolidation. With that said, you do not need to read another article about support levels and accumulating weakness. You already … Continue reading

One should wait a day or two after a Fed day to know if a move is real because the reaction (to the Fed) can be reversed in 24 to 48 hours. Now, 48 hours later, we know the move wasn’t real, and the sector correction continues. Last week we noted that gold and silver … Continue reading

Corrections are a good thing. As we wrote last week, they pave the way for new buyers and new adopters of the trend. In turn, the trend strengthens. During the bull market of the 2000s, the corrections in gold stocks were mostly long, multi-month consolidations.  The brief cyclical rebound from 2008 to 2011 was the … Continue reading

It appears the Gold sector is in a correction that could become its most serious since March.  GDX has corrected 13% while GDXJ has corrected nearly 15%. Silver meanwhile has held up much better than Gold, which failed to break resistance at $1760/oz.  During the rapid rebounds of 2008 and 2016, corrections in the gold … Continue reading

The precious metals sector may have begun a correction on Wednesday.  The miners (GDX, GDXJ) sold off after reaching significant resistance levels while the metals are trading just below significant resistance levels.  We mentioned these targets in our article last week. GDXJ has pulled back a bit after testing 7-year resistance while GDX has pulled … Continue reading

The precious metals sector could currently be trading within a bullish consolidation. The metals have consolidated and corrected for one month while the shares have been consolidating for three weeks.  Gold and Silver have bounced from support several times while the shares have traded around their highs over the past three weeks. The sector (aside … Continue reading