Next Leg Higher Starting in Gold & Gold Stocks
As the stock market sold off, gold mining stocks pulled back from resistance, and Silver fell below the critical $29/oz level. Growing recessionary fears, stock market weakness, and the specter of the 2008 Boogeyman pressured the sector lower.
That was all she wrote.
The sector has quickly recovered and could be poised to run after the coming Fed rate cut next week.
Gold has broken again in nominal terms but, more importantly, is on the cusp of breaking out in real terms.
Gold against foreign currencies (Gold vs. FC) is breaking out from a five-month consolidation, and Gold against the equal-weighted S&P 500 is on the cusp of a new three-and-a-half-year high.
The GDX advance-decline line, an excellent leading indicator, is in a new primary uptrend and just a smidge from another high and two-year high.
This type of breadth often precedes more strength in the miners.
There are two weeks left in the month, but the monthly chart shows significant breakout potential if GDX and GDXJ maintain their current levels.
GDX is working on a 4-year high, and GDXJ is working on a 3-year high. Furthermore, if miners can push higher from here, they will face limited overhead resistance dating back a decade. GDX is close to an 11-year high.
History does not always repeat, but gold stocks trended higher following the first rate cut in each of the last four rate cut cycles.
In 1989, they jumped 51% in nine months. Then, in 2001, they gained 41% in two months and 87% in less than five months.
Before 2008 and the global financial crisis, they gained 72% in five months. The gain in 2019 (18% in one month) was limited due to a 35% gain in the two months before the first cut.
Gold, which could test $2600 on Friday, has a measured upside target of $3000. The miners are in a position for a big breakout move.
The rebound in recent days may be the start of what is to come over the weeks ahead.
Source: https://thedailygold.com/next-leg-higher-starting-in-gold-gold-stocks/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.