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Gold & Precious Metals

Gold Stocks: The Need To Bleed

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Posted by Stewart Thomson - Graceland Updates

on Tuesday, 28 February 2017 08:23

Feb 28, 2017

  1. In terms of technical analysis, gold stocks recently reached what I call a “Need to Bleed” price area.
  2. Please  click here now. Double-click to enlarge this important GDX daily chart.
  3. A very large inverse head and shoulders bottom pattern is in the late stages of forming, and this is great news for gold stock enthusiasts around the world.
  4. Most technical chart patterns are quite small and they tend to fail. This one is bigger, and it has a very aesthetic look. 
  5. The price target of this impressive pattern is the $30 - $32 area. That represents a substantial percentage gain for investors, if it plays out.
  6. I’m a GDX buyer this morning, both for myself and for the funds I manage.
  7. Please  click here now. Gold bullion is displaying very solid price action. Following a likely pullback to $1245, my next technical upside target is $1275.
  8. Should gold experience a deeper pullback ahead of the US debt ceiling deadline and FOMC meeting on March 15, investors should be eager buyers at $1220.
  9. Gold is the world’s ultimate asset. It continues to be very well supported by the price action of the “risk-on” US dollar against other key fiat currencies.


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Gold & Precious Metals

Underperformance in Gold Stocks Argues for Interim Peak

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Posted by Jordan Roy-Byrne - The Daily Gold

on Monday, 27 February 2017 09:00

The early stages of Gold bull markets (this one included) are characterized by strong outperformance from the miners. They will lead the metals and turning points and register strong outperformance. We saw that in the early 2000s, late 2008 to early 2009 and we have seen it again over the past year. During the recent rebound, the miners rallied back to the “Trump” resistance while Gold is not yet close to doing so. However, unfortunately for bulls, while Gold is now pushing higher above key levels, the gold stocks are lagging. This new and recent underperformance suggests the gold stocks have made an interim peak and will remain entrenched in a correction or consolidation. 

In the daily bar chart below we plot Gold, GDX and GDXJ. Gold closed the week up 1.6% and through resistance at $1250/oz while both GDX and GDXJ closed down over 2.5%. That is a strong negative divergence. Gold also eclipsed its early February high while miners did not. Do note that the miners already reached their early November peak (GDXJ exceeded it) while Gold remains some $40/oz below that peak. Buying in the miners reached an exhaustion point.  

Feb242017minersngold

Gold, GDX, GDXJ



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Gold & Precious Metals

Gold's Rally: Key Tactics For Profits

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Posted by Morris Hubbartt - Super Force Signals

on Friday, 24 February 2017 09:31

February 24, 2017

Today's videos and charts (double-click to enlarge):

Gold, Silver, & T-Bonds Key Charts Video Analysis

1gold inverse hands


SFS Key Charts & Tactics Video Analysis



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Gold & Precious Metals

Investors have a growing appetite for gold in 2017

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Posted by Larry Edelson - Money & Markets

on Wednesday, 22 February 2017 06:30

In 2016, two powerful fundamental forces drove the rally in gold prices:

Force #1Negative real interest rates, as inflation accelerated while bond yields remained near record lows, and …

Force #2: Massive money printing, not by the Fed, but by the European Central Bank and Bank of Japan.

This year, political concerns are Trumping the fundamentals, literally, and pushing gold prices higher amid growing policy uncertainty here in the U.S. and especially in Europe.

Here at home, we have a new president who has outlined some very pro-growth policies, but Trump has been short on the details. And the devil is always in the details. Meanwhile in Europe, Brexit is moving forward as the U.K. prepares for life outside the European Union.

And major elections taking place this year in France and the Netherlands will create even more populist pressure for others to exit the EU, and pronto. Markets are already getting nervous about the growing wave of populism around the world, and that’s keeping a firm bid under gold.

So far this year, gold is pulling off a repeat performance of its trend in 2016. In fact, if you compare the trend in gold over the past six months, to the path it followed last year, the pattern looks eerily similar.

chart1s
Click image for larger view

Of course, history never repeats exactly, but it often rhymes. If this pattern holds up — and my own neural net AI forecast charts suggest it will — then I expect gold to enter a mostly sideways trading range, including a correction in the months ahead, which could retest the $1,200 level or a tad lower on the downside.

The real story, however, is not in the yellow metal itself, but in the action of gold mining stocks. I expect this is just the beginning of a major move higher for gold and silver stocks — especially the smaller, junior mining shares. Gold and silver stocks should easily outperform precious metals’ prices to the upside in the years ahead, as gold inevitably skyrockets to $5,000 or more.


Click image for larger view

In fact, the senior mining stocks could outperform by 5- or even 10-to-1 over the price of gold, itself. And select junior mining stocks will really shoot the lights out, easily gaining 20-to-1 or even 50-to1 over the yellow metal.

Right now, investors have already caught on to the outperformance of gold mining stocks, making this a dangerous time to put new money to work in the miners. Let me explain why …

Last year was a good year for gold ETFs, with investors piling into these funds. Record net inflows of $24 billion during 2016 surpassed the previous high of $22 billion in 2009, even after flows reversed briefly post-election, with $8.4 billion of outflows in November and December 2016.


Click image for larger view

In January alone, another $320 million flowed into ETFs that track the price of gold. And the VanEck Vectors Junior Gold Miners ETF (GDXJ) attracted even more, $650 million of net money flows over the past month.

The trouble is, retail ETF investors are almost always late to the party. And they’re likely piling in now, just before gold enters a corrective phase, as I have forecast.

Bottom line: Expect a better buying opportunity in gold and mining stocks AFTER a near-term correction, which should take place between March and May.

Best wishes,

Larry

related: 

Gold’s Fundamentals Strengthen



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Gold & Precious Metals

Gold & The Inflationary Firestorm

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Posted by Stewart Thomson - Graceland Updates

on Tuesday, 21 February 2017 08:13

Feb 21, 2017

  1. Hardly a day goes by now without more good news for gold investors appearing, and the pace of this news flow is accelerating.
  2. Please  click here now. Former Fed chairman Alan Greenspan was interviewed by the World Gold Council in the February edition of their influential “Gold Investor” magazine.
  3. That’s a snapshot of some of the interview. The former head of the Fed gives a magnificent report card to gold as the ultimate asset and currency.
  4. Please  click here now. In India, the restrictions on cash withdrawals from banks are set to end on March 13. That’s just two days ahead of the ultra-important US debt ceiling deadline on March 15.
  5. March 15 is also the date of the next interest rate decision from the Fed. The bottom line: Gold-obsessed Indians will soon have the ability to purchase significant amounts of gold to bet on ongoing problems for the US government.
  6. America is the world’s largest debtor nation, and as Alan Greenspan notes, the country desperately needs enormous infrastructure spending, but it can’t afford it. President Trump is almost certainly going to press congress to put even more debt on the backs of ageing American citizens to get that infrastructure spending done.


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