Editorials

Several weeks ago both Gold and gold stocks hit major resistance after strong but extended moves. A correction or pause was to be expected. Clearly, we can now say, the sector is in correction mode. Corrections tend to have three legs: a simple down up down or A-B-C pattern. The gold stocks (and Gold) appear … Continue reading “Correction in Gold Stocks Continues”

Is Gold now back in a bull market? Most gold bugs think so and are quick to proclaim that. But, could Gold remain in a secular bear market? It hasn’t made a new all time high in 8 years and the perma-bull, financial asset loving crowd certainly believes so. This is semantics because what really … Continue reading “Gold not in Real Bull Market Yet”

Gold is inversely correlated to the trend in real interest rates. As a result, Fed rate cuts and/or rising inflation and inflation expectations are the catalysts for declining real interest rates. The shift in Fed policy, which occurred in only eight months was the catalyst for recent gains in precious metals. The 2-year yield, which … Continue reading “Updated Look at Gold’s Fundamentals”

It has taken a few weeks to play out but our warning of a correction in precious metals (first on August 18) is coming to pass.  Last week Gold, Silver and GDX all formed big bearish reversals at multi-year resistance levels. Yes, these resistance levels (Gold $1550, Silver $18.50, GDX 31) date back to 2013. … Continue reading “Gold to Correct as Stocks Rally”

Back during the bear market years (it’s nice to be able to write that now), I regularly would compare the declines in Gold, Silver and gold stocks to their past history. It gave us a visual representation of just how bad the forever bear market was and helped us decipher when it might end. Thankfully … Continue reading “New Gold & Silver Bull Analogs”

Last week we wrote that near-term risk in precious metals (Gold and GDX especially) was rising and a correction could begin soon.  As Gold nearly reached major resistance at $1550/oz, the miners already began to correct. That negative divergence is an ominous signal for the sector in the short term. However, the good news is, … Continue reading “Gold Set to Correct but Internals Remain Bullish”

Last week was another strong one for the precious metals sector.  Gold gained a whopping $51/oz or 3.5%. The gold stocks (GDX, GDXJ) advanced by roughly 6%. Silver gained 4%. Momentum in the sector began to build once Gold surpassed resistance at $1420-$1425/oz. We had noted the lack of resistance from $1425 to $1525-$1550/oz.  Gold … Continue reading “Near Term Risk In Gold is Increasing”

After a major trend change, it can be difficult for the majority of investors and market watchers to shift and adjust accordingly to the new trend. It’s no different in the current case of precious metals which, other than a huge rally in the first half of 2016 have been dead money for the majority … Continue reading “There’s More Upside in Gold & Gold Stocks”

The precious metals sector appears to have started a correction.  It was roaring higher until natural resistance kicked in and the US Dollar grinded its way higher, towards its 2019 high. Factor in the Fed decision this week and it has created a natural “buy the rumor, sell the news” event.  We cannot know for … Continue reading “Watch These Key Levels in Precious Metals”

It was a huge week for the gold stocks. GDX gained nearly 7% while GDXJ surged over 10%.  Gold hit $1450/oz after Thursday before selling off Friday. Silver met the same fate on Friday but managed to close the week up over 6% and at a new 52-week high.  Let’s take a look at the … Continue reading “Gold & Gold Stocks Ripping. What’s Next?”