A quick update to gold, silver and the miners.
Gold has had a potential bounce target to 1300 in the cards, per this daily chart (as of yesterday’s close).
Here is a real-time view, at 1285.
Silver was at the top of its bounce zone at yesterday’s close.
Here is the real-time view. Silver has broken a downtrend line but not necessarily broken the down trend. That would only come with a break above early June high, which would be a notable bull signal for a longer rally. But there is that pattern again, similar to the one we reviewed on GDX yesterday morning in pre-market. I also looked at a chart of gold and silver bullion fund CEF this morning for a subscriber and sure enough, it was there too. The pattern, if it were to play out, would conservatively measure to 19, which would break the downtrend.
Finally, here is the GDX chart from yesterday morning’s update. There is the similar pattern to silver’s. Silver has broken its pattern to the upside. If the miners were to follow, things would get serious here.
While I don’t have a crystal ball (and wouldn’t use it if I had one) I hope the above gives some perspective on things. I’ll plan to update each day as long as the positive potentials remain in play. But we should remain aware that this move is happening against geopolitical saber rattling by two extreme figures. That is a caveat in and of itself, not a positive. But the theme of yesterday’s update was that it may well have been ‘time’, for both the regular stock market to correct and the precious metals to rally, regardless of the drama. The parameters noted above will help us make that determination.