Editorials

A few days ago we wrote about the potential effects of a Fed rate hike on precious metals. After consulting history we concluded that the rate hike would be immediately bullish for precious metals but subsequently bearish. The main reason is because when the Fed started a new cycle of increases during an already established bull market … Continue reading

The markets have for the most part already priced in a Fed rate hike which is expected next week. Yesterday fed funds futures indicated an 80% chance of a rate hike. It would be the first hike in roughly 9 years. The Fed last began a new hiking cycle in 2004. We consult history to … Continue reading

A few weeks ago we warned that the gold miners were at risk of a technical breakdown. They struggled to rebound at support while Gold was breaking to a new low. Gold continued to decline but the miners held support and stabilized. Gold traded as low as $1045 on Thursday but the miners continued to … Continue reading

The bear market in the gold miners has been one for the record books but it is not over yet. Last week we noted that precious metals were on the cusp of making new lows while the US$ index was very close to another key breakout. This scenario remains well in play and would certainly … Continue reading

Last Friday we wrote that precious metals were very oversold and due for a bounce or a pause. We also argued that the overall prognosis remained very bearish. The technicals argue for more downside and sentiment indicators remain far from bearish extremes. The strength in the US$ index is another reason precious metals should remain … Continue reading

The precious metals sector has declined sharply in recent weeks with no pause or intermittent breaks in the decline. Including today, Gold is down eight consecutive days and 16 of the past 18 days. The gold miners (GDX) have lost roughly 20% in the past seven days. The sector is extremely oversold in the short … Continue reading

The precious metals sector sharply reversed course after the Federal Reserve hinted that it may raise rates at its next meeting. This about face from the Fed was enough to effectively end the fledgling rally that began in the summer and threatened to take metals and miners higher to their 400-day moving averages. The prevailing … Continue reading

The metal posted a false break out above the 200 day moving average during the FOMC meeting, which was followed…

We published a video update a few days ago discussing the short-term outlook for the precious metals sector which includes the gold miners. With regards to the miners, we took the view that they could digest recent gains and hold support or break lower and trade close to the support near summer lows. After this … Continue reading

The precious metals sector, after failing to breakdown has enjoyed a strong rally in recent weeks. Gold, Silver and junior gold miners (GDXJ) have reached their 200-day moving averages with senior miners (GDX) close behind. While this is a positive development it does not yet signal that the sector is embarking on a new bull … Continue reading