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

The Optimist’s Guide to Airlines and Gold
By: Frank Holmes, US Funds

“Baghdad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools
By: Clint Siegner, Money Metals

Market Action Suggests Downside in Precious Metals
By: Jordan Roy-Byrne CMT, MFTA

Gold Looks Good & Silver Looks Great
By: Stewart Thomson, Graceland Updates

QE4ever Arrives in One Quantifiable Quantum Leap!
By: David Haggith

Precious Metals Update Video: Gold in a pause zone
By: Ira Epstein

The Dutch Central Bank Endorses The Gold Standard
By: Dave Kranzler

Inflation in the Offing?
By: Gary Tanashian, NFTRH

SWOT Analysis: Gold Sales in India Continue to Weaken
By: Frank Holmes, US Funds

Perspective is Everything - Gold
By: Rambus

 
Search

GoldSeek Web

 
There’s More Upside in Gold & Gold Stocks


 -- Published: Monday, 5 August 2019 | Print  | Disqus 

Jordan Roy-Byrne

After a major trend change, it can be difficult for the majority of investors and market watchers to shift and adjust accordingly to the new trend.

It’s no different in the current case of precious metals which, other than a huge rally in the first half of 2016 have been dead money for the majority of the current decade. Despite the newfound bullish fundamentals and bullish technical action, plenty of worry remains that the breakout in Gold could fail. 

Conventional wisdom argues the sector has run too far too fast and needs to correct. Technical and sentiment indicators are showing extremes (but only when judged against recent, bear market years). 

While we do not want to outright chase this strength we also don’t want to wait for a big reset that may not materialize.

After grinding around $1420-$1425/oz for five weeks, Gold closed the week near $1460/oz. This suggests it has surpassed resistance at $1425/oz and should continue towards $1475/oz. and resistance at $1525 to $1550/oz.

Speculators are increasing their exposure, but the net speculative position is not quite yet at an extreme. 

Gold Weekly w/ CoT & Open Interest

Although Gold has pushed higher, the gold stocks have remained in a correction which began 11 days ago. So the much anticipated correction or snapback in the miners is already taking place and Thursday’s low could mark the worst of it. 

GDX & GDXJ Daily Bar Charts

The miners could have more backing and filling ahead but the path of least resistance remains higher. GDX could test $31 and GDXJ could surpass $42.50 as Gold establishes another, higher floor beyond $1425/oz. 

On the fundamental side, the Fed cut the funds rate down to 2.25% but the market continues to expect more. The 2-year yield closed the week at 1.72%, which implies an additional two rate cuts. 

At somepoint the precious metals sector will endure a sustained correction. That point does not appear to be imminent.

Take advantage of the current pause in gold stocks to buy weakness and look for fresh opportunities and value plays that are not so extended.

Jordan Roy-Byrne CMT, MFTA


| Digg This Article
 -- Published: Monday, 5 August 2019 | 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.