Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By The Daily Gold (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

The Next Move in Precious Metals

% of readers think this story is Fact. Add your two cents.




The rebound in Gold and gold mining stocks has been weak.

Gold hasn’t even hit $1800 yet, and GDX and GDXJ sputtered at the first sign of resistance. In addition, their weekly closes have been weak, and they failed to hold most of April’s gains into May.

Monday’s pop aside; there has not been much to be excited about.

From a technical standpoint, Tuesday’s downside reversal reinforces that the oversold rebound in the gold stocks could be over.

The weekly chart below shows GDX has struggled at $36, and GDXJ has struggled at $50.

My chart of leading indicators for the sector reveals the underlying weakness in the sector.

GDX & GDXJ Weekly Candles

Sure, gold stocks have outperformed Gold, but their other metrics have been weak.

Even as Gold rallied over $100/oz, the GDX advance-decline line sits at the March low. GDX has outperformed the S&P 500 only slightly, while Gold made a new low relative to the stock market in April.

Leading Indicators for Precious Metals

That is not exactly the picture we hope for if the sector is to embark on a multi-month rally or sustain a rebound. 

Not to beat a dead horse, but precious metals are unlikely to sustain a move higher until the stock market experiences at least a big correction.

The market is focused on the economic recovery and potential for higher nominal yields, which could put a floor under real interest rates. This explains the current struggles in precious metals.

If and when the concern becomes inflation rather than growth, then precious metals will outperform. 

Let’s also keep in mind that precious metals made huge moves that require correction in time and price. Gold gained roughly 65% in only 15 months. Silver gained almost 150% in less than five months. 

These kinds of moves can correct for a year or even two, with the primary trend remaining intact. More time is needed to clear weaker hands and for fundamentals to improve. 

The next move could be a resumption of the correction or a sideways grind.

In the meantime, focus on the companies that can add value and aren’t entirely dependent on rising metals prices, like the majority of the junior industry. Those juniors that can add value over the next year will explode higher when the sector turns and sustains it.

In our premium service, we continue to identify and accumulate those quality juniors with considerable upside potential over the next 24 months. To learn the stocks we own and intend to buy that have at least 3x to 5x potential and more, consider learning about our premium service.

The post The Next Move in Precious Metals appeared first on The Daily Gold.


Source: https://thedailygold.com/the-next-move-in-precious-metals/


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.

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.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Total 1 comment
    • Anonymous

      silver needs to close on weekly or monthly time period above $31 for next leg up to begin, probably about to $40…then it will correct/consolidate to $50 which is major resistance; if it can break $50, then it is free to really take off

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.