Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Closing Report: Gold Gains While Stocks Drop
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 3 19 2018
By: Ira Epstein

GoldSeek Radio: Gerald Celente and Wolf Richter, and Chris Waltzek

SWOT Analysis: Tightened Supplies Could Be Good for Copper
By: Frank Holmes

Technical Scoop - Weekend Update Mar 19
By: David Chapman

Larry Kudlow Toes Wall Street’s Anti-Gold Company Line
By: Clint Siegner

The Wealth Machine That Rising Interest Rates Create And The Conflict With The National Debt (Part 2)
By: Daniel R. Amerman, CFA

2018 Reversal Dates for Gold, Silver and Gold Stocks
By: Przemyslaw Radomski, CFA

Standing Ready to Lease Gold
By: Keith Weiner

Is The U.S. Economy Really Growing?
By: Peter Cook, CFA


GoldSeek Web

Time for Caution in Gold Miners

 -- Published: Sunday, 22 October 2017 | Print  | Disqus 

By Jordan Roy-Byrne CMT, MFTA

Last week we noted the likely negative impact of a sustained rebound in the US Dollar on Gold. Recent weakness in precious metals has not been much of a surprise considering the sector’s relative weakness months ago amid a weak US Dollar. While the greenback has bottomed, it has yet to push above resistance at 94. Nevertheless, Gold and in particular the gold stocks are threatening more losses even before a push higher in the greenback. It is time to be defensive and cautious.   

Although GDX is holding its 200-day moving average and has yet to pierce its October low, GDXJ already has. The juniors (GDXJ) closed below their October low and broke their uptrend line from May. This, after failing twice at the 200-day moving average. The break below $33.50 projects down to $32.00. The juniors lack strong support until $30 while GDX’s initial support levels are $22 and $21. 

Gold, which traded as high as $1308 early last week, closed the week at $1280. Its initial support is at $1255-$1260. If GDXJ joins GDXJ and breaks its October low then we would anticipate Gold does the same. In that case, the next strong support level is around $1215-$1220. Gold’s net speculative position of 41.9% of open interest remains relatively high and suggests potential selling power should traders turn bearish. 

The big picture view on miners is they remain in a complex bottoming pattern that began over four years ago. While the multi year outlook favors a break of the 2016 highs and a massive move higher, the near-term outlook is clearly bearish. GDX and GDXJ appear very likely to test their July lows and there is a risk they could even retest their December 2016 lows at $18 (GDX) and $27 (GDXJ).

The near-term outlook for precious metals and gold miners especially is negative and traders and investors should therefore stand aside and wait for more favorable conditions. Readers who follow our work are not surprised as we’ve written about the possibility of a weak fourth quarter since the middle of September. That is the bad news. The good news is those who buy weakness in the months ahead could position themselves for a strong 2018. Find the best companies and wait for the sector to get oversold and test strong support. To follow our guidance and learn our favorite juniors for 2018, consider learning more about our premium service.

Jordan Roy-Byrne CMT, MFTA


| Digg This Article
 -- Published: Sunday, 22 October 2017 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of 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 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

The views contained here may not represent the views of, its affiliates or advertisers. 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, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.