Commentaries, Sentiment

Gold and Gold Stock Update

The following is a brief snippet of Wednesday’s 16-page update. Go here for more information on our service and a free 14-day no risk trial.


Gold remains on track (as far as our template).  Here is the potential bullish outcome.  The longer Gold holds above $1160 and that trendline, the more likely the bullish outcome.

Sentiment remains supportive.  See the GLD put-call below.  Also, public opinion from is 69% bulls.  Interim tops have occurred at 75% while significant tops at 85%.  Consolidation for another month or two would leave public opinion near 60% bulls.

Gold Stocks

This is an interesting juncture for the gold stocks.  There is enough evidence to make a case that the recent low will hold.

Note that the bullish percent index is at 45% (neutral to slightly oversold).  Note that the 7-day GDX put-call is at a level consistent with bottoms.  Note the put-call spike on Friday.  Consider that gold stocks are performing well in real terms.  Also consider that the HUI has twice recently held above both the 100 & 200 day-MA’s.

Initial support is 425-430, with very strong support at 380-400.  Initial resistance is now 470-475.

Here is the GDX put-call data we referenced above.

Jordan Roy-Byrne