The analysis below, if it proves to be bullish, is about precious metals only, not broad markets. A subscriber questioned this and I’ll again note that the view for gold mining is counter-cyclical, which means a decelerating economy and declining inflation is the best environment for gold miners. Stocks may discount a recession at any time, but my view continues to be that there is lower to go before the stock market bear ultimately ends.
This is the moment that gold, silver and precious metals stocks can prove something, technically.
Gold futures (daily chart) have rammed upward to the combo of clear lateral resistance and the SMA 200 in the 1800 to 1820 range.
If silver has anything to say about it, gold would also break out. Silver has been leading for 3 full months now and has ticked a high above the May-June highs (22.57) before easing a bit, and now must hold this and turn it to support. If it does, I think the precious metals would be confirmed on the next big leg in the bull market (yup, I said it).
HUI will probably try for the SMA 200 today when US markets opens. This chart is as of yesterday’s close.
The ultimate target for HUI is 500 (+/-). Taking out this area is step 2 in loading that target. Step 1 was the break upward from the bottoming pattern and hold of the pattern top as support.