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 Radio: Professor Laurence Kotlikoff, Professor Alexander Kosovichev & Robert Ian
By: Chris Waltzek Ph.D., GoldSeek Radio

You Know Things are Falling When…
By: David Haggith

Gold & Silver Prove Once Again, They Go Up When Most Everything Goes Down
By: SRSrocco

Why Debt Won't Spark Inflation
By: John Mauldin, Thoughts from the Frontline

COT Gold, Silver and US Dollar Index Report - May, 24, 2019
By: GoldSeek.com

BIS reduces its gold swaps by two-thirds over last two months
By: Robert Lambourne

Gold Mid-Tiers’ Q1’19 Fundamentals
By: Adam Hamilton, Zeal Research

China Threatens to Stop Exports of Vital “Rare Earth” Metals to U.S
By: Mike Gleason

Every Bounce In Tesla Stock Can Be Shorted
By: Dave Kranzler

Another Gold Buyout Takes Center Stage
By: Marin Katusa

 
Search

GoldSeek Web

 
Gold Stocks Remain in Downtrend but Uranium Stocks on the Cusp of New Bull Market


 -- Published: Wednesday, 19 September 2018 | Print  | Disqus 

By Jordan Roy-Byrne CMT, MFTA

 

Gold stocks failed to breakout in the spring and then brokedown to multi-year lows by September. As autumn beckons, the precious metals sector at large is very oversold and could be starting a rebound. However, the fundamentals are not yet in place for a new bull market. They will be when the Fed moves to the end of this rate hike cycle. Although gold stocks and most commodity stocks are mired in downtrends, that isn’t the case for uranium stocks which appear to be on the cusp of a new bull market.

 

According to Trade Tech, the spot price of uranium is $26.70/lb which is a two and a half year high. The price has begun to rise after basing for several years.

 

In recent months, the announcement of production cuts from the world’s largest uranium producers (Kazatomprom and Cameco) along with the Section 232 investigation into uranium imports has contributed to the recent price rise in both the commodity and the shares.

 

Below we plot a capitalization-weighted uranium stock basket which consists of 11 junior uranium companies.

 

The basket, which closed yesterday near 95 is trading above all of the major moving averages but needs to close above 98 to make a new 52-week high. A weekly close above 115 would mark a major breakout and put the index at a 4-year high.

 

http://www.goldseek.com/news/2018/9-19jb/09182018uraniumgold.png 

 

At the top of the chart we plot the uranium index against GDXJ. It’s uranium juniors against gold juniors and uranium is winning. The ratio closed last week at more than a two and a half year high.

 

Turning to the gold stocks, we see a rebound could be underway. The gold stocks have been extremely oversold and last week started to rebound as they approached very strong support levels. Potential upside targets are GDX $20-$20.50 and GDXJ $30-$30.50.

 

http://www.goldseek.com/news/2018/9-19jb/09182018minerswkly.png 

 

The gold stocks are setup for a rally but one should not confuse a relief rally with a new bull market. The fundamentals are not in place for such. At least not yet. As for uranium, the fundamentals appear to be favorable and recent price action could put the sector in position for a big winter and 2019. To profit from a new uranium bull and prepare for an epic buying opportunity in junior gold and silver stocks in 2019, consider learning more about our premium service. 

 

 


| Digg This Article
 -- Published: Wednesday, 19 September 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.