There is a cyclical nature to almost everything in life and gold is no different. During the good times (2001-2011), gold rallied year-after-year, and everyone was excited. In tough times (2011-2015) prices declined year-after-year and dreams were crushed. Where are we now you ask? I believe we are transitioning into another run of “Good […]
Continue Reading →The bottoming process has been grueling, and I see some hesitation from members. There have been a few scares along the way, but we are on track for a cycle low. In bull markets, you want to buy dips below the 200-day MA. The current decline below the 200-day is progressing beautifully. Prices bottomed […]
Continue Reading →Metals and Miners followed through higher and gold closed above $1300, 6-month lows are likely. I’d like to see gold rally a bit further and close above $1,309 next. If gold bottomed at $1281 as I suspect, this next cycle should finally take prices above $1400 and establish a bull market breakout. Silver and […]
Continue Reading →We are in the worry stage surrounding 6-month lows. Prices may have bottomed, but it’s unconfirmed. If metals and miners remain buoyant next week, I’ll give the all clear and confirm the 6-month lows. If prices weaken and close below key support, we may see one more dip. Miners are diverging positively from gold […]
Continue Reading →Gold is approahing an important low and I see two potential scenarios. Scenario 1) Prices formed 6-month lows on Tuesday, and a new rally is just getting started. Scenario 2) This is just a 3-5 day bounce and prices will rollover and bottom within a week or two. The COT for gold is neutral […]
Continue Reading →Gold continues to weaken, and a breakdown below $1310 is becoming likely (currently at $1314). Silver dropped to fresh lows (now $16.36). If gold breaks sharply below $1310 and then $1303 I’ll look for a bottom around Friday’s employment report.
Continue Reading →The dollar rallied on Friday and gold finished lower. We will find out next week if this is just a pullback or the beginning of a more profound correction in gold. The evidence isn’t overpowering, but I see subtle clues supporting a basic pullback. Over the last year, we’ve been conditioned to expect little […]
Continue Reading →Gold has formed several indication candles, and this may result in a sharp move. The bulls and bears are fighting for control. It’s unclear who will win the short-term battle. The dollar will determine the victor. Silver exploded higher from the range and closed above $17.00. If this was an actual breakout, then we […]
Continue Reading →Gold’s COT improved with commercials reducing their short positions by 32,330 contracts. However, it remains moderately bearish at 351,473. The non-commercial (large speculators) in silver increased their net-short position for the third straight week. Again, the last time we saw this was in 2003 (see bullish silver chart). There was mild selling on strength […]
Continue Reading →Prices have held up, and I took initial positions in JNUG and USLV. Bought JNUG at $14.77 with an initial stop at $13.85. Bought USLV at $10.42 with an initial stop at $9.85. Prices didn’t drop deep enough to trigger an official buy signal, so the color codes haven’t changed.
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