Editorials

Last week we noted that the risks in precious metals were primarily technical.  Sentiment and technicals urge caution over the short-term.  The net speculative position in Gold has remained high for months while the 21-day daily sentiment index (DSI) hit 81%. Since the sector peak five months ago, Silver and the gold stocks have corrected … Continue reading

Gold cannot lose this year. Let me explain. The most bearish points for Gold (aside from a blowoff in inflation) are when an economic recovery gains traction or when the Fed raises rates to combat inflation. All three scenarios entail stable or rising real interest rates and, therefore, no investment demand for Gold. At present, … Continue reading

The precious metals sector remains in a correction, and as long as the 200-day moving averages hold, a bullish consolidation that began last September. Sure, Gold made a new high and is still holding around the previous high, but the rest of the sector has not confirmed that strength. When Gold is outperforming Silver and … Continue reading

Amid the de-escalation of US-Iran tension, Gold reversed course sharply. On Tuesday, Gold shot up to $1613/oz before closing down at $1560/oz.  This was not a surprise because the gold stocks peaked days earlier. As Gold surged to start January, first to $1550/oz and then higher, its strength was not confirmed by the gold stocks. … Continue reading

In recent days, the gold stocks have taken a big step towards a significant breakout, which appears almost certain in 2020.  The gold and silver stocks had been leading the respective metals and, as we posited a few weeks ago, could be unleashed when the price correction in Gold and Silver ends. The sharp move … Continue reading

In recent weeks we’ve noted the positive developments in the gold stocks despite the sector being in a period of correction.  Last week we shared the idea that the next impulsive move in gold stocks might begin when the correction in the metals ends.  In this article, I’m going to share the one chart which … Continue reading

If you follow our work, you are aware of our growing optimism on gold stocks in 2020. As we’ve written, the fundamental setup in 2020 should be bullish for precious metals. Meanwhile, the technical setup for gold stocks is one of the best we’ve ever seen.  Gold stocks (and GDX specifically) are consolidating in a … Continue reading

A few weeks ago we noted the bullish setup for 2020. Macro developments, one way or another will tend to favor Gold. There isn’t a realistic scenario that isn’t Gold bullish. Note the comments from various Fed-heads last week. They are laying the groundwork to target higher than 2% inflation and won’t consider raising rates … Continue reading

The precious metals sector remains in a correction. The miners have shown some positive signs but are not ready to move yet because the metals likely have more correction ahead. Technical support levels can provide us with low risk buy opportunities but combine that with sentiment data and we increase our odds of success. One … Continue reading

The Fed has paused its rate cuts and Gold and gold stocks continue to digest and correct summer gains after reaching multi-year resistance. The correction continues as there is little threat of an immediate break of resistance. It’s boring but this usually happens in precious metals bull markets.  Strong moves are followed by sustained correction … Continue reading