The combination of supports and acandlestick formation encouraged the bulls to fight.How high could stock go?Last week turned out to be a breakthroughfor the bulls. They managed to maintain important support, which attractedbuyers to the trading floor and resulted in further positive technical changes.How high can the bulls climb in the following days? You will find the answer tothis question in t...Read More
Silver is underpriced.In other words, silver is on sale.The current gold-to-silver ratio reveals this.This ratio tells you how many ounces of silver it takes to buy one ounce of gold. Or to put it another way, the gold:silver ratio tells you the price of gold in silver. In general, the ratio tends to narrow as a precious metals bull market unfolds.In other words, silver outperforms gold.The opposi...Read More
Thanks to the last week’s declines,natural gas lost 32% and approached the support area. What are theimplications?Major Declinein Natural Gas PricesLast week, natural gas recorded itsbiggest decline in months. Could this have been predicted? What technicalfactors encouraged the bears to attack? What changes did this movement leavebehind on the chart? You will find answers to these questions...Read More
Which countries have the most gold?Central banks around the world have aggressively added gold to their reserves over the last several years.In 2022, central bank gold buying came in at 1,136 tons. It was the highest level of net purchases on record dating back to 1950, including since the suspension of dollar convertibility into gold in 1971. It was the 13th straight year of net central bank gold...Read More
Gold appears to have built solid support above $2,000 an ounce, but momentum to move higher in the short term has eased with uncertainty about the timing of Federal Reserve rate cuts.But short-term sentiment aside, there are plenty of reasons to remain bullish on the yellow metal.The Fed appeared to surrender to inflation at its December meeting. While the central bank held rates steady, it signal...Read More
With Bitcoin making the news last week when the Securities and Exchange Commission (SEC) finally approved exchange traded funds, it’s a good time to review the topic again.Bitcoin still offers the potential to serve as a form of honest money and to end-run the central bankers and politicians who have abused the fiat system so badly. Yet some proponents still market the crypto asset as &ldqu...Read More
Gold price has been falling in today’spre-market trading, but… Given the recent (HUGE!) weekly reversal, does itreally surprise anyone?The Historical ContextWell, it might surprise those thateasily forget what happened in the previous weeks and focus on just theday-to-day price swings, but the truth is that the context provided by previousweeks, months, and years (and the performance...Read More
While the yellow metal hit a newrecord high, the silver price remains below its post-pandemic peak. Recession RisksLoom Over SilverWhile gold has dominated the headlines recently,silver and mining stocks have been material underperformers. And with thelatter better barometers of investors’ enthusiasm, their relative weaknessshould concern the permabulls. Likewise, with w...Read More
While looser monetary policy may seembullish in the short term, the medium-term ramifications could upend the yellowmetal.Recession PessimismAheadThe ‘bad news is good news’ tradecontinues to dominate the financial markets, as weaker economic data isperceived as bullish for risk assets. In a nutshell: if the Fed pivots and endsQT, all of investors’ problems will disappear. Howeve...Read More
Silver just shot up, and given whatthe stock market is doing, it makes perfect sense.Namely, it’s most likely the final partof the rally in them both, and the same is the case for gold and mining stocks. Echoing Early 2022Starting with the stock market, it’sstill the case that the shares are following their early-2022 path.What I wrote about it previously, remainsup-to-date:Stockssoare...Read More
Cameco Corp. (CCO:TSX; CCJ:NYSE) — the godfather of the uranium trade — has moved to all-time highs, with the spot price hitting US$80.00/lb. From Trading Economics:"Uranium prices in the U.S. surged past US$80 per pound for the first time since January 2008 in November, soaring past pre-Fukushima disaster levels amid high demand and risks to supply. Fossil fuel volatility and decarbon...Read More
Hi,Gold has long been seen as the refuge for investors who are concerned about economic downturns and inflation. And it's tempting to attribute the metal's price movements to factors like supply and demand, the dollar and interest rates. But Elliott wave analysis shows the actual driver of gold prices is ... market psychology.Elliott wave analysis is the only method that objectifies market psychol...Read More
Gold stocks have mostlyground lower to sideways since spring, leaving this contrarian sector reallyout of favor again. Yet both the metaland its miners’ stocks are early on in their strongest seasonal rallies of theyear. From late October to late February,gold tends to enjoy excellent gains which the gold stocks leverage. Given 2023’s great winter-rally setup, gold&rs...Read More
The Copper/Gold ratio has been indicating an oncoming counter-cyclical environment since breaking down in June, 2022Copper: Cyclical, inflation sensitive and a material of positive economic progress.Gold: Much more counter-cyclical, less inflation sensitive and a ‘liquidity haven’ material of long-term monetary value. I have not posted the monthly chart of the Copper/Gold ratio probabl...Read More
Caught between conflicting forces,will pivot optimism outweigh the economic malaise that should unfold in themonths ahead?A Short-Lived Rally?From war premiums to pivot hopes, silver seessunny skies, as the international and domestic fundamental outlooksincrease investors’ enthusiasm , as the international and domesticfundamental outlooks increase investors’ enthusiasm. However, t...Read More
As the concern with geopoliticspeaked, so did gold price. Silver and mining follow. Are you prepared for thelikely outcome?Gold Peaks and SlidesIn my yesterday’sanalysis, I wrote the following about gold: Goldmade a few attempts to move above the all-important $2,000 level and the risingresistance lines, and it failed all of them. The strong short-term momentum isgone, just as the fear of th...Read More
The gold miners’ stocksare lagging gold’s strong young upleg, their gains falling behind. Their striking performance gap is undermininggold-stock sentiment, leaving traders even warier of this sector. While definitely vexing, this anomaly has onlyarisen over the past couple weeks. Goldstocks’ precedent during past major gold uplegs implies this will unwind soon,...Read More
As the Federal Reserve puts a hold on interest rates, investors have to ask themselves whether the elevated inflation rate is also on hold.The Fed’s preferred measure of so-called “core” inflation, which excludes food and energy costs, most recently came in at 3.7%. Despite having fallen substantially since last year’s peak, the official inflation rate has yet to approach t...Read More
With the economic backdrop continuingto deteriorate, silver’s bull case has become increasingly fragile.Ominous Signs AheadWhile silver has bounced off its recentlows, the white metal continues to underperform gold. And whenvolatile areas of the precious metals market showcase weakness (silver andmining stocks) it’s often an ominous sign for the entire sector. In addition,&n...Read More
While geopolitical conflict has keptgold afloat, mining stocks’ weakness signals trouble ahead. EconomicRecession LoomsWhile risk assets attempt to breakfree of their bearish corrections, gold’s relative outperformance hasthe yellow metal shining bright. Despite that, we’ve booked 11-straightprofitable trades, and our 12th (currently open) remains in the gree...Read More