After several months of weakness, precious metals are finally beginning to perk up. It’s the first time in a while gold reacted positively to Fed-related news. It feels like a fundamental/physiological shift may be taking hold.
I believe last weeks $1167.10 low in gold was the much belated 6-month low. Currency fluctuations, record short-selling, and tariff fears extended cycles well-beyond their traditional mean.
Gold needed a trigger to abort the relentless price suppression. I think we got that today as the Fed tipped slightly dovish.
We still have 2-hours before the close. Continued strength and new intraday highs to finish the day would give us the recognition/confirmation days I’ve been seeking.
-GDX- Miners are up 3.74% as I write. Prices are above Wednesday’s highs and testing the 10-day EMA. Continued strength into the close will establish a confirmation/recognition day and support a bottom at $18.15. However, prices would have to close above the $19.77 and $20.56 gaps in the coming weeks to prescribe a new bull market advance.
-GDXJ- Juniors are above Wednesday’s high and prices are up nearly 5%. Strong follow-through into the close would favor a bottom at $26.78. The bearish gap levels to overcome lie at $29.34 and $30.60.
I’ll update one more time before the close.