Gold Didn’t Need Any Special Boost To Reach New Low
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Although gold had the conditions to rest for a while and fall only a little, it chose a more radical path and hit new monthly lows. Can it move lower?
In yesterday’s video analysis, I emphasized that gold, silver, and mining stocks are moving lower, and that they can do that regardless of the possible rally in the stock market. Let’s start today’s analysis with a look at how perfectly the markets confirmed what I said yesterday.
Stocks ended yesterday’s session higher. So, theoretically, gold, silver, and mining stocks had a good reason to rally yesterday and do nothing today.
The influence coming from the dollar index Index is somewhat similar.
Dollar Index Daily Chart
Nothing really happened yesterday, and the USDX is up just slightly in today’s overnight trading. Thus, gold had a good reason not to do anything yesterday, and decline just a little today.
Gold Daily Chart
Instead, gold just moved to new monthly lows.
This is not really supported by the moves in either the stock market or the USD Index. It seems that gold simply wants to decline here.
Since it recently broke below a very strong support area (that it then verified as resistance), it seems that gold could fall significantly soon.
While gold is weak, maybe the junior miners are strong?
GDXJ Daily Chart
While they didn’t move to a new monthly low just yet, it’s clear that their short-term downtrend continues, and the theoretically positive impact of the general stock market doesn’t affect them in the way it “should”. Consequently – that’s right, you guessed it – it seems that junior miners really want to slide once again.
Given the analogy to 2013, it seems that they can now slide really profoundly.
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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses are based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are deemed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski’s, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
