It’s been pretty quiet this afternoon. Gold (December) is hanging out around the $1225 level, and silver is trading at $14.47.
Miners are nearing support at their October gaps and cycle trendlines. I think prices will head lower in November – the question is will we see a rebound first or will prices breakdown without bouncing. I’m leaning towards a bounce but time will tell.
-GDXJ- Juniors filled the $26.60 gap precisely and tagged the cycle trendline. Let’s see what happens from here. Technically, this would be the 5th consecutive down day if prices finish lower. From a short-term perspective, that could lead to a 1-3 day bounce. If we get a bounce, I’ll probably use it as a shorting opportunity.
-GDX- Prices have a little further to go before filling the $18.63 gap. We could see a bounce from the gap and cycle trendline. I think the odds favor lower prices into November and December. However, that could change instantly depending on next Tuesday’s election results.
The Tuesday report should be out around 5:00 PM