Gold Price Action Hints of Brewing Stock Market Crash

Gold has had a tumultuous year to say the least. The safe-haven metal soared above long-term resistance at $2000 per ounce briefly in March after Russia began its military occupation in Ukraine, then sank below long-term support at $1700 this week as the Fed toughened its approach to repressing the...

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The Gold Stock Seven Year Bottoming Cycle
 

There were fortunes made by contrarian speculators that began to accumulate a basket of high-risk/reward quality precious metals junior stocks, just as significantly undervalued and oversold mining space situations appeared in 2001, 2008, and 2015. This seven-year pattern of bombed-out juniors...

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Bombed Out Junior Miners Creating an Accumulative Bottom

With a blistering short-covering rally in the gold complex taking place heading into this week, the positive impact of less-hawkish Federal Reserve comments faded while investors waited for more signs on the data front. Gold prices rose 2.57% last week as markets firmed up the $1700 support level...

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Gold Price Action

September 23rd, 2022

Gold has had a tumultuous year to say the least. The safe-haven metal soared above long-term resistance at $2000 per ounce briefly in March after Russia began its military occupation in Ukraine, then sank below long-term support at $1700 this week as the Fed toughened its approach to repressing the highest inflation experienced in over 40 years...

The Seven Year Gold Stock Bottoming Cycle

September 9th, 2022

There were fortunes made by contrarian speculators that began to accumulate a basket of high-risk/reward quality precious metals junior stocks, just as significantly undervalued and oversold mining space situations appeared in 2001, 2008, and 2015. This seven-year pattern of bombed-out juniors creating significant bottoms is likely in the process of taking place here again in 2022....

Bombed Out Junior Miners Creating an Accumulative Bottom

August 5th, 2022

With a blistering short-covering rally in the gold complex taking place heading into this week, the positive impact of less-hawkish Federal Reserve comments faded while investors waited for more signs on the data front. Gold prices rose 2.57% last week as markets firmed up the $1700 support level, while bullion ended above formerly significant resistance at $1780 on a monthly closing basis...

Fed Peak Hawkishness Sparks Gold Short Squeeze

July 29th, 2022

As telegraphed in this space last week, the gold complex was set up for a sharp move heading into this week’s Federal Open Market Committee (FOMC) meeting results. At the conclusion of the FOMC meeting on Wednesday, the Fed announced an expected second consecutive rate hike of 75 basis points (bps), bringing the Fed funds rate to a range of 2.25 to 2.5%...

Gold Bounces Off Critical Support Heading into Fed Week

July 22nd, 2022

The gold price has been trading sideways since mid-2020, frustrating both bulls and bears while building cause for the next breakout in either direction. After gold's sharp doubling in price from 2016 to 2020, the safe-haven metal has been in a prolonged pullback/consolidation phase to digest those out-sized gains. Gold's peak to trough correction ($2,089-$1,673) has been 20%, a textbook....

Jay Be Nimble, Jay Be Quick to Induce a Gold Reversal Candlestick

July 8th, 2022

These are the times that try Gold Bugs' souls. As the gold price continues to be hammered in the face of a parabolic U.S. dollar, the entire precious metal's complex has reached the "get me out at any price" capitulation phase to begin the second half of 2022. With the "barbaric relic" being down 11 of the past 12 trading sessions before producing a weak...

Gold Stocks Enter the Contrarian Dream Zone

July 1st, 2022

The gold complex came under more pressure this week on the reiteration by the US, UK, and European central banks that they are willing to do whatever it takes to combat inflation at the Annual ECB Forum on Wednesday. This was followed by more selling into quarter-end on Thursday, despite U.S. 10-year Treasury yields moving below 3%...

Gold Rises in the Face of More Market Turmoil

June 17th, 2022

The Federal Reserve raised its target interest rate by three-quarters of a percentage point on Wednesday to stem a disruptive surge in inflation. The central bank also projected a slowing economy and rising unemployment in the months to come. The rate hike was the biggest announced by the U.S. central bank since 1994 and came six months after...

Another Proposed Major Miner Merger Lifts the Gold Complex

June 3rd, 2022

In a sector where investor confidence is extremely low, mining companies re-kindled efforts last year to explore alliances and partnerships to bring promising projects online and share the risk between parties. Depleting gold reserves and asset scarcity, along with market pressure to bulk up company valuations, sent larger miners out seeking deals to boost growth and...

Dismal Retail Earnings Induce Gold Sector Bounce

May 20th, 2022

With the Federal Reserve announcing its largest and most aggressive interest rate hiking cycle in 22 years earlier this month, the marketplace has been pricing in a likely upcoming recession. Although the Fed's planned quantitative tightening (QT) of its $9 trillion balance sheet has yet to begin as scheduled in June, the anticipation of the monetary punchbowl being taken away has already ushered in...

Short-Term Gold Sector Pain Setting the Stage for Long-Term Gains

May 13th, 2022

Recent moves by the Federal Reserve have swiftly brought fear into the marketplace of a major policy error that could alternately lead to a slowdown in economic growth, combined with unstoppable inflation. Although the precious metals junior sector carnage has been widespread and deep, due to being higher-risk, the entire marketplace has not been spared...

Gold Holding Key Support During Panic Selling Event in Stocks

May 6th, 2022

Aggressive central banks have replaced war concerns as the center of gold investor's attention recently, amid a soaring U.S. dollar and sharply rising U.S. Treasury yields. Heading into yet another all-important week of major central banker policy meeting's that began with FOMC meeting conclusions being announced mid-week, the gold price tested support at $1850 on Tuesday...

Gold Bears Set Sights on Critical Support Level into Fed Week

April 29th, 2022

Panic selling has triggered margin calls in the marketplace over the past week, as investors have finally decided it is time to prepare for the worst-case scenario — a Federal Reserve-induced recession. As suspected in this space last week, the suddenly strong miner and silver relative weakness after a false miner breakout foretold heavy selling in...

Relative Weakness in Miners and Silver Bring More Caution into Gold

April 22nd, 2022

As geopolitical uncertainty rises, along with the growing threat of stagflation and a potential recession, more investors are placing safe-haven capital into gold. The gold ETF’s tracked by Bloomberg registered inflows of nearly 16 tons last week, being the 13th consecutive week to show inflows. Since the beginning of the year, inflows have totaled over 273 tons making ETF investors a key driver of the...

Gold Posts Its Best Quarterly Gain Since June 2020

April 1st, 2022

With U.S. and European stocks posting their weakest quarter since the pandemic crash of 2020, Gold Futures gained 6.6% during a tumultuous Q1. The safe-haven metal traded within a $300 range and closed Q1 above $1950, which is an all-time quarterly closing high. The last time Comex Gold Futures gained more for a quarter was in Q2 2020 when the...

Gold's Bullish Technical Set-Up Heading into Quarter-End

March 25th, 2022

After drifting sideways in a tight $100 range for nearly a year, the month of March has seen gold volatility increase significantly with its price trading within a $185 range, driven mostly by the financial fallout from the crises in Ukraine. And once central bankers across the world ramped up the fight against rapidly surging inflation last week, gold has been attempting to create a new floor at the...

Gold Rises as Global Central Banks Raise Interest Rates

March 18th, 2022

As the Russia-Ukraine war continues with no end in sight, investors shifted their attention mid-week to the Federal Reserve's expected move to end three years of a highly accommodative monetary policy. In anticipation of this historic event, the gold price came down to test critical support at $1900 this week while...

Stagflationary Fears Heat Up Heading into Fed Week

March 11th, 2022

After the Western world began to wage a financial war against Russia last week, Gold Futures ran towards its record peak resistance at $2089 on Tuesday, coming just $20 short of this major milestone. But the safe-haven metal became extreme overbought in the short-term while doing so, ushering in a healthy consolidation of its...

Miners Surge After Monthly Gold Close Above $1900

March 4th, 2022

Since its August 2020 high, gold has been exasperatingly difficult to call correctly because of the numerous false breakouts in both directions that have taken place in the last 18 months or so. Once the Federal Reserve turned hawkish in mid-June of last year, rallies were being sold and sell-offs...

Gold Volatility Increases as War Adds to Ongoing Inflationary Fears

February 25th, 2022

The gold price rallied sharply on Wednesday evening as Russia initiated a full-blown military action in Ukraine. With financial markets entering panic mode, after the news of a war that Western politicians had incessantly warned being imminent, the safe-haven metal zoomed to the $1975 region into the early Thursday morning Comex trade...

Looking for the Miners to Confirm Gold Breakout

February 18th, 2022

In a flight to safety, as continued signs of escalation in the Ukraine-Russia conflict and some less-than-stellar economic data ushered in risk-off sentiment, the gold price reached strong overhead resistance at $1900 on Thursday. With 100% certainty of the Federal Reserve monetary punchbowl about to be emptied...

Gold's Tedius Coiling Action Tightens as Inflation Surges

February 11th, 2022

The key $1,800 area continues to be a magnet for gold. Rallies have been sold, and sell-offs have been bought with traders on both sides continuing to be whipsawed out of position. Since mid-2021, any advance, or decline, that bullion has made quickly ran out of steam and has returned to the $1,800 zone...

Silver is Leading Gold Higher into Fed Week

January 21st, 2022

Since Gold Futures peaked at an all-time high of $2089 in August of 2020, the safe-haven metal has endured an extended and healthy correction of outsized gains. After bullion had doubled in price to $2089 per ounce last August, from its low of $1045 in late 2015, this necessary consolidation process has been...

10 Reasons to Be Bullish the Gold Complex in 2022

January 7th, 2022

With bearish gold headlines making the rounds as the new year came to a close last week, you would think bullion was down double-digits in 2021. But after gaining a stellar 18% in 2019, then another 24% in 2020, the gold price consolidated those huge gains as much as 20% by Q2/2021 and ended last year...