Editorials

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

Although most of the precious metals sector has trended lower in recent months, Gold has held up well. It and the other, weaker components of precious metals got a boost on Monday when China retaliated with tariffs of its own. There has been little follow through since. This begs the question, will a trade war … Continue reading

Several weeks ago we wrote about the downside risk in the gold stocks. After the various gold stock indices formed distribution-type tops, the subsequent selling has been swift. Miners have plunged through moving averages and short-term breadth indicators quickly reached oversold extremes. While the gold stocks are oversold, it could be a little while before … Continue reading

As we know, Gold and the US Dollar have an inverse relationship. Gold is priced in US Dollars and the drivers of each are similar (from an inverse point of view). Over long-term periods both trend in the same direction but the magnitude of the moves can vary and be quite different. The standard inverse … Continue reading

The downside potential in precious metals discussed last week is playing out as Gold and gold stocks have broken down technically. The global economy appears to be firming and that is evidenced by a sustained rebound in global equity markets. As a result, the potential for a rate cut which pushed precious metals higher is … Continue reading

  There are more than a handful of things I can cite as leading indicators for the Gold price. Ratios such as Gold against the stock market and Gold against foreign currencies are generally good leading indicators. The gold stocks and Silver can function as leading indicators at times. Yhe yield curve and bonds … Continue reading

  Stop me if you’ve heard this before. Precious Metals disappointed again. The miners were leading the metals but the metals broke down from bear flag patterns and that took the miners lower, suggesting an interim top is in place. The technicals suggest weakness could be ahead for the sector but the fundamentals are … Continue reading

Since last spring we’ve written over and over again about a Fed rate cut being the catalyst for a bull move in gold stocks. The history is almost bulletproof. Many lows in gold stocks over the past 60 years coincided with the end of rate hikes. At present the Federal Reserve is in pause … Continue reading