Editorials

Rally in Gold & Gold Stocks Has More Upside

Gold and Gold stocks have rallied as expected and the consolidation in the miners in recent days looks bullish. GDX and GDXJ have digested the recent recovery quite well as Gold is testing resistance around $1200/oz. While the price action portends to more gains so does the breadth in the miners as well as short-term … Continue reading “Rally in Gold & Gold Stocks Has More Upside”


Gold Stocks Leading but Approaching Trump Resistance Levels

Although we expected a rally in the gold mining sector, we have been surprised by its strength and recent buying pressure. From the lowest ticks, Gold has rallied less than 6% but GDX has gained 25% and GDXJ has soared 36%. This rebound adds to the evidence that the gold stocks are leading the metal. … Continue reading “Gold Stocks Leading but Approaching Trump Resistance Levels”


Surging US Dollar in 2017 a Catalyst for Gold Bottom

Gold has suffered recently in the wake of higher real interest rates while the US Dollar, thanks to higher yields has reached a 14-year high. Stronger real rates hurt Gold but so does a stronger US Dollar, which remains the dominant global currency. In addition to falling real interest rates Gold likely needs the US … Continue reading “Surging US Dollar in 2017 a Catalyst for Gold Bottom”


Relief Rally Coming in Gold & Gold Stocks

Last week we wrote that Gold was broken but noted the oversold condition in the precious metals sector as well as the relative strength in the gold stocks. At one moment last week, the gold stocks were trading above where they were in mid-November when Gold was trading some $60/oz higher. In other words, Gold … Continue reading “Relief Rally Coming in Gold & Gold Stocks”


Gold is Oversold but Broken

Last week we wrote that the 2016 bull market in Gold and gold stocks had gone off course. It had moved too far out of the historical boundaries to remain a bull market. There was also other evidence of such including but not limited to rising real yields. Gold’s last hope was to hold $1200-$1210 … Continue reading “Gold is Oversold but Broken”


Gold’s 2016 Bull Market Moving Off Course

While we expected additional weakness in Gold and gold stocks (weeks ago) we did not quite expect the kind of selling the sector experienced in the wake of Donald Trump’s election victory. The market reacted by sending bond yields dramatically higher which resulted in stronger real interest rates, which is fundamentally negative for precious metals. … Continue reading “Gold’s 2016 Bull Market Moving Off Course”


More Weakness Ahead in Gold Stocks

The gold stocks continue to correct their epic +150% rebound that began in January and ran into the summer. Last week it was the poor relative strength in the miners that hinted the correction had more to go in both time and price. This week, it was the miners failure at a confluence of resistance, … Continue reading “More Weakness Ahead in Gold Stocks”


Negative Divergence in Gold Stocks Bodes for Lower Prices

You have heard it before from us and probably elsewhere. The miners lead Gold. We have seen this every major turn dating back 16 years and it can also be the case with respect to short and medium term trends. While the precious metals sector has rallied over the past few weeks, the rally has … Continue reading “Negative Divergence in Gold Stocks Bodes for Lower Prices”


Gold Stocks Corrections in Bull Markets

The gold stocks are clearly in correction mode. The large caps (HUI, GDX) have corrected 30% while the juniors (GDXJ) have held up well in comparison by correcting the same amount. Given a number of factors (the size of the previous advance, the recent technical damage, stronger US$ index and rising yields) the gold stocks … Continue reading “Gold Stocks Corrections in Bull Markets”


Monthly Charts Argue for Lower Prices in Precious Metals Complex

The trading month doesn’t always end on a Friday but when it does we like to take a look at the monthly charts. Generally, I prefer daily and weekly charts because they have more data points. However, monthly charts carry more significance than weekly charts which carry more significance than daily charts. You get the … Continue reading “Monthly Charts Argue for Lower Prices in Precious Metals Complex”


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