Stronger Dollar is Bullish Catalyst for Gold

    The US$ index is breaking higher. Its trading at 96.41 as we pen this. A daily close above 96.61 marks a new 52-week high and puts the dollar in position to eventually retest its bull market high at 104. If this strength continues then the relief rally in precious metals could be over. … Continue reading “Stronger Dollar is Bullish Catalyst for Gold”

Checking Gold Stocks Valuations

    It’s no secret that gold mining stocks are historically cheap and have been for several years. Traditional metrics like price to cash flow and price to book value showed that gold stocks in late 2015 were at arguably their cheapest points since the start of the bull market in the 1960s. Other metrics … Continue reading “Checking Gold Stocks Valuations”

A Bottom in Gold but not THE Bottom

  Gold has struggled to rebound despite an extreme oversold condition and extreme bearish sentiment. Nevertheless, conditions for Gold have not worsened in recent days. In fact, Gold as well as gold stocks appear to be basing for a potential rebound into the holiday season. While some gold bulls expect a major bottom, we aren’t … Continue reading “A Bottom in Gold but not THE Bottom”

Gold Stocks Remain in Downtrend but Uranium Stocks on the Cusp of New Bull Market

    Gold stocks failed to breakout in the spring and then brokedown to multi-year lows by September. As autumn beckons, the precious metals sector at large is very oversold and could be starting a rebound. However, the fundamentals are not yet in place for a new bull market. They will be when the Fed … Continue reading “Gold Stocks Remain in Downtrend but Uranium Stocks on the Cusp of New Bull Market”

Gold Miners Setting Up for Big Rally

    The recent rally attempt of the gold stocks fizzled out as the December 2016 lows failed to hold. Now the miners are making new lows. As they pine for the next support they figure to be even more oversold as more bulls throw in the towel. These are the conditions needed to engender … Continue reading “Gold Miners Setting Up for Big Rally”

Upside Targets for Gold, Gold Stocks & Silver

  After a vicious selloff precious metals have stabilized. Its not a surprise given the breadth and sentiment extremes we noted and had predicted earlier. Although recent gains have met some resistance, the immediate path of least resistance should be higher. Let’s take a look at the key support and resistance levels for the metals … Continue reading “Upside Targets for Gold, Gold Stocks & Silver”

Gold Stocks Crash! Now What?

  Last week GDX and GDXJ were down almost 12% at their lows on Thursday. Since then, they’ve recovered but only a tiny fraction of recent losses. The crash did result in the miners reaching an extreme oversold condition while trading around long-term support at their December 2016 lows. It was the perfect setup for … Continue reading “Gold Stocks Crash! Now What?”

Gold Stocks are Not Too Oversold Yet

In recent days Gold has been more oversold than the gold stocks. Entering this week, the gold stocks were fresh off a major technical breakdown. An upside or downside break can lead to a market stretching beyond what typically qualifies as overbought or oversold. After Monday’s selloff, the gold stocks are hitting oversold levels but … Continue reading “Gold Stocks are Not Too Oversold Yet”

Precious Metals Monthly Charts

  With the end of July I thought it was important to take a look at the monthly charts which carry more significance than weekly and daily charts. Visible trends on the monthly charts obviously carry greater weight than those on the weekly and daily charts. Monthly charts can also simplify and clarify sector relationships. … Continue reading “Precious Metals Monthly Charts”

Gold Stocks Testing Last Ditch Support

    Although precious metals have not rebounded too strongly yet, the long awaited summer rally could be underway (at least in Gold). Gold is oversold and its sentiment is overly bearish. But it is holding important support in the low $1200s. Silver has begun to rally after breaking down from a triangle consolidation. The … Continue reading “Gold Stocks Testing Last Ditch Support”

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