Metals and Miners formed significant lows in December and prices should rally sharply in 2018. The dollar is breaking support and likely started a new bear market. Commodities, in general, should be embarking on a multi-year advance.
Gold is at resistance. Closing the week above $1,300 would be very productive. Failure to break above $1,300 tomorrow or Monday could lead to a brief pullback. Prices should find support around the 10-day EMA going forward.
Miners are taking a breather. Prices are trading sideways, and it is unclear if they will provide a meaningful pullback. The pause will end when gold successfully defeats the $1,300 level.
I’ll consider adding to USLV and JNUG if prices pullback to the 10-day EMA. Otherwise, I’m content holding my current positions.
-US DOLLAR- The dollar continues to fade, and prices broke the November low. If prices continue to sink, gold should break above the $1,300 level.
-GOLD- Prices continue to rise out of the 6-Month low, and we are embarking on a multi-month rally. There is firm resistance around $1,300, and the bears will try to keep that level. However, the weakening dollar should drive gold through $1,300. Once above $1,310, the next level of resistance arrives around $1,350.
-SILVER- Prices closed above the intermediate trendline and are approaching the 200-day MA. We may see a little pushback around the $17.00 level. Nevertheless, the underlying trend is healthy, and a multi-month rally has started.
-GDX- Miners are taking a breather as gold approaches the $1,300 level. The consolidation/pullback will end when gold breaks above $1,300, and we will get another run higher.
-GDXJ-Juniors paused and are allowing the 10-day EMA to catch up. We should see another upleg when gold breaks above $1,300.
-JNUG- Bought JNUG at $15.87. Prices may not pullback very much here. If they do, I’ll look to add a little more between the 10-day and 50-day EMA’s.
-USLV- Bought USLV at $10.12. Prices are rising, and the trend is healthy. The next area of resistance is the blue intermediate trendline. If our analysis is correct, USLV should rally several fold in the coming years.
-WTIC- Prices are consolidating after Tuesday’s sharp jump. We should see one more push to $60.00-$63.00 before a prices top. If verified, I’ll anticipate a 4-6 week intermediate pullback.
Have a great night. The Weekend Newsletter will be released Saturday.