June 27, 2018, 8:22 AM
In yesterday’s intraday Alert, we explained why the short-term outlook for the precious metals changed from bearish to neutral and we took profits from our short positions. It was not just the fact that the price targets were reached for gold and silver. The key to the change in the outlook was seeing the confirmations from gold’s performance relative to the USD Index and from the mining stocks’ performance compared to the one of gold. In today’s analysis, we’ll take a closer look at what happened and what it means going forward.
June 26, 2018, 3:08 PM
June 26, 2018, 9:11 AM
In yesterday’s alert, we explained why mining stocks’ strength was not to be trusted and the market agreed with us. The precious metals sector declined and the HUI Index – proxy for gold stocks – moved to new monthly lows. Friday’s strength was therefore completely invalidated. But, since gold’s and mining stocks’ cyclical turning point is tomorrow and gold is already at our target area of $1,250 - $1,260, one should still prepare for a rebound. But, what does the above mean exactly? Should one take profits from their short positions and prepare for opening long ones?
June 25, 2018, 8:15 AM
Gold stocks outperformed gold on Friday and we had previously written that this is the kind of the bullish confirmation that we would be looking for in order to take profits from our short position or even enter a long one. Is this really the case and will we see gold much higher shortly?
June 22, 2018, 7:08 AM
Yesterday’s session was tense. There were factors supporting a reversal in gold, silver and mining stocks, but the strong, medium-term trend was in place, so it wasn’t obvious what kind of action was best to take from the risk to reward point of view. Consequently, it all depended on the confirmation that could have been seen during the session. And…
June 21, 2018, 8:23 AM
The decline in gold, silver and mining stocks continued yesterday, further increasing your profits on the current extra-large short position. But, since gold is already in the $1,260s, and our target area is $1,250 - $1,260, one should prepare for a nearby reversal.
June 20, 2018, 7:50 AM
Gold declined yesterday and the rest of the precious metals sector followed. Silver stocks are even quite close to breaking to new 2018 lows and gold stocks just confirmed a critical move that happened last Friday, which has very important implications going forward. However, this week’s turning points are about to come into play – what’s likely to happen?
June 19, 2018, 8:14 AM
Practically nothing happened yesterday in gold, silver, mining stocks, USD Index, EUR/USD, and USD/JPY. Nothing happened in terms of the daily closing prices and we didn’t see much action intraday either. Yet, it doesn’t mean that there were no implications. Conversely, in case of one part of the precious metals market, the lack of action was very important. And it has impact on the short-term outlook.
June 18, 2018, 9:53 AM
The top in the precious metals market is in and there’s no doubt about it. Many daily gains were erased during just one session and those who were prepared profited significantly. You were. Still, let’s keep in mind that no trade is definitely good or bad until its completed. The question, therefore, is if we are close to a good exit price for this trade, are there no meaningful support levels nearby that could trigger a corrective upswing? In other words, the question is about gold’s near-term downside target. The even more important follow-up is what to do with this knowledge – should one prepare to exit the short position shortly, or should one see right through the correction?
June 15, 2018, 11:45 AM
June 15, 2018, 9:23 AM
Silver soared, while gold and mining stocks moved higher and reached new monthly highs. All that despite a move higher in the USD Index. It seems to be a clear bullish combination for the PMs. The moon appears to be at hand. Is it the last chance to jump into the precious metals market with both feet?
June 14, 2018, 10:00 AM
Yesterday’s session was quite volatile, just as one might have expected it to be.It was the interest rate decision day in the US and the first of this week’s monetary authorities’ comments. It was volatile, but it did not result in any meaningful changes in gold or mining stocks. The only thing that was really affected was – once again – silver. Its strength was clear and since we saw it for yet another day in a row, it’s obvious that it means something. Is silver on a verge of a massive rally?
June 13, 2018, 7:50 AM
Almost nothing happened on the precious metals market yesterday, or at least that may seem to be the case as the first sight. And that’s true if one doesn’t count the spike in GLD’s volume, but there was something else that actually should have caught one’s attention and it probably wasn’t the case for many gold traders. Silver stocks just broke to new monthly low. What does this tell us?
June 12, 2018, 8:21 AM
In our previous analyses we wrote about silver’s outperformance as something bearish and we saw the latter once again yesterday. The difference, however, was that this time, the white metal’s upswing was accompanied by higher mining stock prices. The latter sometimes indicates the beginning of a rally, so the above might be viewed as a bullish invalidation of silver’s previous signals. Did the outlook really change yesterday?
June 11, 2018, 8:02 AM
In the past several analyses, we emphasized the boring nature of the current situation in the precious metals market and its implications. Friday’s session took it to the extreme as virtually nothing happened during the session. At the first sight. Those, who look beyond the usually analyzed aspects, have noticed an important breakdown in one part of the precious metals market and they see that PMs are on a verge of making an even more profound breakthrough. Analogous breakthrough meant a critical and potentially lucrative move in the past… What are the PMs really telling us?
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