NFTRH; Precious Metals Bounce

Folks, I am ready to be the strongest gold bug there is one day when the time is right.

Why did I write that sentence?  Because this update is one of caution and parameters on the bounce happening today, with Canada closed and other markets thinned out for the holidays.  I am ready to be bullish on the PM’s when given the right signals, but today has not provided much in that regard.

There is nothing positive happening yet in yield spreads.  Here is the 30 vs. 5 year.

30.5

Gold vs. the stock market has gone nowhere yet.

gld.spy

Silver vs. gold has bounced a bit but remains in a daily downtrend below the SMA 50.

slv.gld

GLD has popped back above the trend line, but needs to clear the SMA 50 at a minimum to think about getting bullish.  Of more importance would be clearing the December high at around 119.

gld

SLV is similar.  It would have to clear 16.50.

slv

GDX and GDXJ have bounced above their short-term trend lines but they do not get bullish (other than for day traders) until the daily SMA 50’s and then the November highs are cleared.  This is the parameter we have used for much of the bear market.

gdx

gdxj

Bottom Line

It is a holiday week bounce until it proves otherwise.

We will monitor as always and NFTRH 323 will update.