{"id":1159419,"date":"2020-01-12T19:34:48","date_gmt":"2020-01-13T01:34:48","guid":{"rendered":"http:\/\/thedailygold.com\/?p=24650"},"modified":"2020-01-12T19:34:48","modified_gmt":"2020-01-13T01:34:48","slug":"implications-of-reversal-in-gold","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1159419","title":{"rendered":"Implications of Reversal in Gold"},"content":{"rendered":"
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Amid the de-escalation of US-Iran tension, Gold reversed course sharply. On Tuesday, Gold shot up to $1613\/oz before closing down at $1560\/oz. <\/p>\n

This was not a surprise because the gold stocks peaked days earlier. As Gold surged to start January, first to $1550\/oz and then higher, its strength was not confirmed by the gold stocks.<\/p>\n

The shares usually lead the metals at turning points. They were outperforming the metals before recent strength, and they were underperforming badly as the calendar turned. <\/p>\n

While Gold and Silver will have ugly reversal candles on their charts, the reversal is not worrisome because there is no fundamental shift. <\/p>\n

The Fed is not going to hike rates if inflation picks up. They have told us as much. Nor will they forego cutting rates of conditions slow down again. <\/p>\n

Gold, Silver, and gold stocks remain well above long-term moving averages, and their uptrends are intact. <\/p>\n

We plot the weekly candle charts of GDX and GDXJ below. <\/p>\n

The two most recent candles are bearish and suggest GDX and GDXJ could trade below initial support around $27.50 and $39.50. The rising 42-week moving averages (equivalent to 200-day moving averages) should form a confluence of strong support around GDX $26 and GDXJ $37 in the next month or two. <\/p>\n

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GDX & GDXJ Weekly Candles<\/figcaption><\/figure>\n<\/div>\n

We anticipate something similar in the metals. The daily candle chart below highlights the bearish reversals that occurred on Wednesday.<\/p>\n

Gold, which closed at $1560\/oz, has support at $1480\/oz and reliable support at $1450. By the end of March, Gold’s 200-day moving average could approach $1480\/oz.<\/p>\n

Silver, which closed at $18.10, has support at $17.25 as well as reliable support at $16.50, which includes the 200-day moving average.  <\/p>\n

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Gold & Silver Daily Candles<\/figcaption><\/figure>\n<\/div>\n

We expect precious metals will continue the correction and consolidation that essentially began at the end of summer. Still, that weakness could be mitigated by a potential correction in the stock market. <\/p>\n

The stock market is up 40% over the past 12 and a half months, and a variety of sentiment indicators are screaming caution. For example, the short interest in the S&P 500 ETF is at a 2-year low.<\/p>\n

Also, @SentimenTrader notes that: On December 24 of 2018, 54% of their core indicators showed extreme pessimism. On December 27 of 2019, 55% of their core indicators showed extreme optimism. That\u2019s the most in 15 years.<\/p>\n

To sum things up, the reversal implies that precious metals will continue to correct within a larger bullish consolidation with the potential of testing 200-day moving averages before spring. <\/p>\n

If GDX and GDXJ are going to make that huge breakout this year, as we expect, then the weeks ahead would be one of your last best chances to get positioned. <\/p>\n

We continue to focus on identifying and accumulating the juniors with significant upside potential in 2020. <\/p>\n

To learn the stocks we own and intend to buy that have 3x to 5x potential, consider learning more about our premium service. <\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Amid the de-escalation of US-Iran tension, Gold reversed course sharply. On Tuesday, Gold shot up to $1613\/oz before closing down at $1560\/oz.  This was not a surprise because the gold stocks peaked days earlier. As Gold surged to start January, first to $1550\/oz and then higher, its strength was not confirmed by the gold stocks. … Continue reading “Implications of Reversal in Gold”<\/span><\/a><\/p>\n","protected":false},"author":23,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[583,581],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1159419"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1159419"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1159419\/revisions"}],"predecessor-version":[{"id":1159628,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1159419\/revisions\/1159628"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1159419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1159419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1159419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}