Editorials

Last week we wrote that near-term risk in precious metals (Gold and GDX especially) was rising and a correction could begin soon.  As Gold nearly reached major resistance at $1550/oz, the miners already began to correct. That negative divergence is an ominous signal for the sector in the short term. However, the good news is, … Continue reading

Last week was another strong one for the precious metals sector.  Gold gained a whopping $51/oz or 3.5%. The gold stocks (GDX, GDXJ) advanced by roughly 6%. Silver gained 4%. Momentum in the sector began to build once Gold surpassed resistance at $1420-$1425/oz. We had noted the lack of resistance from $1425 to $1525-$1550/oz.  Gold … Continue reading

After a major trend change, it can be difficult for the majority of investors and market watchers to shift and adjust accordingly to the new trend. It’s no different in the current case of precious metals which, other than a huge rally in the first half of 2016 have been dead money for the majority … Continue reading

The precious metals sector appears to have started a correction.  It was roaring higher until natural resistance kicked in and the US Dollar grinded its way higher, towards its 2019 high. Factor in the Fed decision this week and it has created a natural “buy the rumor, sell the news” event.  We cannot know for … Continue reading

It was a huge week for the gold stocks. GDX gained nearly 7% while GDXJ surged over 10%.  Gold hit $1450/oz after Thursday before selling off Friday. Silver met the same fate on Friday but managed to close the week up over 6% and at a new 52-week high.  Let’s take a look at the … Continue reading

Gold and gold stocks especially continue to shrug off bits and pieces of bad news. No escalation in the trade war? The selloff lasted one day and the sector rebounded strongly the following day. Strong headline jobs number? Again, the weakness was a buying opportunity. This past week there was more.  The June CPI report … Continue reading

Gold has successfully broken out as it closed the month and quarter well past 6-year resistance. It also confirmed the breakout when priced against foreign currencies. With that said, there are important indicators we can watch to help us monitor Gold’s health and the sustainability of this move.  Sure, we can watch the Gold price … Continue reading

As I pen this article, Gold is set to close the month and the quarter above $1400/oz and holding the majority of its recent gains. That does not necessitate continued strength but it is a good sign. The technicals and fundamentals are finally in place for Gold.  It is outperforming all major currencies and the … Continue reading

Gold has finally broken out to the upside. In Asia trading on Thursday, Gold exploded through the $1360 to $1370 resistance zone and was able to hold the gains throughout the day, closing above $1395/oz. As we pen this article, Gold has to chance to break $1400/oz by the weekend. The close of the month … Continue reading

The more times a level is tested, the weaker it becomes and the more likely it is to break. Once again, Gold has rallied up to the wall of resistance in the $1350 to $1375 region. Gold has previously tested that wall a handful of times but failed to break through. This time, Gold is … Continue reading

In recent days the market has moved from expecting a rate cut by January 2020 to now expecting as much as three rate cuts by then. As a result both Gold and gold stocks launched higher, forming a “three white soldiers” bullish reversal pattern. Last week and in previous writings, we noted the importance of … Continue reading

We have written for over a year about the historical importance of the shift in Federal Reserve policy. We’ve noted that over the past 65 years in 11 of 13 rate cut cycles the gold stocks have enjoyed tremendous gains. The historical data shows an average gain of over 170% and median gain of almost … Continue reading