Editorials

During bull markets, gold stocks (and the entire precious metals sector) tend to oscillate between correction and consolidation or impulsive advance. Commodities and precious metals are emotional markets, and this can make the medium to intermediate-term trends prominent and easier to define.  At present, the sector is in a period of correction and consolidation, and … Continue reading

The precious metals sector is correcting and consolidating as predicted, although some parts have been buoyant in recent days. Silver is one of those parts. The immediate question is whether a new leg higher starts or if recent strength is a bounce within a larger correction and consolidation. If you are fully invested or close … Continue reading

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