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

Gold Standard Coming Into View
By: Jim Willie, CB

Doug Casey Debunks Four Myths About Trump, Taxes, and the Economy
By: Doug Casey, International Man

Steve Forbes Speaks Out on Gold, Inflation, and Central Bankers
By: Mike Gleason

Precious Metals Update Video: Gold had a wild trading session, FOMC coming up & G20
By: Ira Epstein

At Last, a REAL Rally in Gold! (video update)
By: Rick Ackerman, Rick's Picks

Ray Dalio Is Kinda, Sorta, Really Wrong, Part 2
By: John Mauldin, Thoughts from the Frontline

COT Gold, Silver and US Dollar Index Report - June 14, 2019
By: GoldSeek.com

Gold-Stock Upleg Mounting
By: Adam Hamilton, CPA, Zeal Research

Gold Nearing Breakout into Unprecedented Bullmarket and the Latest Cots Won't Stop It...
By: Clive Maund

GoldSeek Radio Nugget Interview: Peter Schiff
By: Chris Waltzek, GoldSeek Radio

 
Search

GoldSeek Web

 
Gold And Gold Stocks Approaching Resistance


 -- Published: Sunday, 28 January 2018 | Print  | Disqus 

By Jordan Roy-Byrne

 

Gold and gold stocks have enjoyed an excellent rebound since their December lows. Over the past six weeks Gold rebounded from a low of $1238 all the way to $1365 in recent days. The miners meanwhile rebounded nearly 18% (GDX) and 21% (GDXJ). However, these markets are approaching important resistance levels and at a time when sentiment is becoming stretched and the US Dollar has become very oversold.

 

Take a look at the charts of Gold, GDX and GDXJ. Gold has reached the September 2017 highs while GDX came within 2%-3%. GDXJ is lagging but came within less than 5%. Another round of buying over a few days should be enough to push the miners to resistance.

 

 http://www.goldseek.com/news/2018/1-28jb/01262018pmdaily.png

 

Recent strength in Gold and gold stocks is mostly due to weakness in the US Dollar which is very oversold and approaching important support. On Friday, the US Dollar Index touched 88, which marks the 2009 and 2010 peaks and is the only real support between the low 80s and the low 90s. We also plot Gold against foreign currencies (Gold/FC) which tells if Gold is rising in real terms or if its rising due to the US Dollar weakness. Gold/FC failed to break above key resistance. That signals that over the short-term, Gold would be vulnerable to a bounce in the US Dollar.

 

 http://www.goldseek.com/news/2018/1-28jb/01262018usdgoldc.png

 

Some sentiment indicators suggest the rebound in precious metals could be in its later innings. Thursday the daily sentiment index for Gold hit 91% bulls. Friday, the daily sentiment index for the greenback hit 10% bulls. The CoTís are not as extreme. Goldís net speculative position (relative to open interest) is 40% bulls. The 2011, 2012 and 2016 peaks were around 55% bulls. Meanwhile, Silverís net speculative position is at 26% bulls.

 

Gold and gold stocks have enjoyed a great rebound since the Fed rate hike but technicals and sentiment suggest they are due for a pause or correction. The miners and Gold are very close to the resistance levels we noted in a recent editorial. Recent strength has been driven mostly by weakness in the US Dollar which is very oversold and testing support. Meanwhile, the daily sentiment index has reached short-term extremes for Gold and the greenback. The odds appear to favor a pause in this rebound or a short-term correction. That is great news for anyone who missed the rally as it would setup a decent buying opportunity before a major breakout. We continue to seek the juniors that are trading at reasonable values but have fundamental and technical catalysts that will drive increased buying. To follow our guidance and learn our favorite juniors for 2018, consider learning more about our premium service.

 

Jordan@TheDailyGold.com

 

 


| Digg This Article
 -- Published: Sunday, 28 January 2018 | 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.