LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Precious Metals Test Initial Resistance


 -- Published: Friday, 16 October 2015 | Print  | Disqus 

By Jordan Roy-Byrne, CMT

The precious metals sector, after failing to breakdown has enjoyed a strong rally in recent weeks. Gold, Silver and junior gold miners (GDXJ) have reached their 200-day moving averages with senior miners (GDX) close behind. While this is a positive development it does not yet signal that the sector is embarking on a new bull market trend. There are a few things to keep an eye on over the days and weeks to come that can help us determine if a new bull market is taking shape.

While the 200-day moving average (dma) is important, it is not as significant as the 400-dma moving average which does a better job of defining bull and bear markets. Take a look at the chart below and note how the 400-dma has capped the best bear rallies of the past three years. As bulls, we need to see precious metals rally past the 200-dma and reach the 400-dma. Breaking above the 400-dma would confirm a new bull market has begun but merely reaching the 400-dma would be a strong first step.

Oct162015pms

Gold has gained strength against equities but has yet to fully break resistance and make a new 52-week high. The Gold/NYSE ratio charted below is consolidating at key trendline resistance and the 400-day moving average. If the stock market begins another leg lower in the weeks or months ahead will Gold go with it or will it buck the trend? The answer to that question is critical to Gold’s medium term prospects.

Oct162015Goldvsstocks

The gold stocks bear analog chart makes a strong case that the mining sector may have reached its low. The current bear market is nearly as long as the 1996 to 2000 bear and in terms of just about every index (BGMI, XAU, GDM) is worse in price. One should also keep in mind that the miners bottomed five months before Gold at the end of that bear.

Oct162015BGMIbears

The precious metals complex has enjoyed a strong rebound to 200-day moving averages but could be due for a pause or correction. We will be watching closely to see if the sector can digest recent gains and consolidate around resistance. The days and weeks to come figure to be very interesting. If the miners have hit a bottom then they should surpass their 200-day moving averages and show increased relative strength within the next month. As we navigate the end of this bear market, consider learning more about our premium service including our favorite junior miners which we expect to outperform into 2016.  

Jordan Roy-Byrne, CMT

Jordan@TheDailyGold.com


| Digg This Article
 -- Published: Friday, 16 October 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.