2013 has been a challenging year for gold investors and the current macroeconomic environment appears to be highly unfavorable for the yellow metal – gold currently faces its most challenging fundamental backdrop in at least two decades: US 10-year real rates have risen 77 basis points in the last two months US 10-year real rates… Continue Reading
Today we finally got the long awaited breakout above $1400: While the path of least resistance continues to be higher over the near term, some significant challenges lie ahead later in the summer: Gold Daily Gold Weekly Gold bulls should enjoy the rally that is likely to last at least another couple of weeks, however,… Continue Reading
With US markets closed for the Memorial Day holiday and Canadian markets trading thinly, gold is poised for a major upside breakout from the ascending triangle which has recently formed: Click to enlarge The measured move above $1400 would target roughly $1460 with significant resistance still remaining above $1475: The current sentiment and market positioning… Continue Reading
Since the gold crash six weeks ago we have seen price trade within a roughly $140 range, with the midpoint of that range and the greatest amount of market tension centering around ~$1400: Click to enlarge Should gold rally back above the key $1400 level, the odds would greatly favor a major bottom being in… Continue Reading
There have been more false bottoms in precious metals & mining shares than a 1920s gangster’s briefcase. However, today’s massive bullish reversal has all the ingredients of a major market low – this one looks like the real McCoy. Due to the confluence of the following factors, May 20th, 2013 has a very good chance… Continue Reading
Big market drops rarely occur when everyone is prepared for them. Will this time be different? Gold investors already know all about the record bearish sentiment, small speculators being positioned short gold futures for the first time on record, and the various big name fund managers who have proclaimed the death of the gold bull.… Continue Reading
In short we’ll be buying gold, mining shares, and US Treasuries on dips all summer long. If we are to presume that the Wall Street Journal’s Jon Hilsenrath is not completely off the reservation, and was in fact prompted by the Fed itself to float a ‘tapering trial balloon’, then we must believe that we… Continue Reading
Two weeks ago Sprott USA Chairman Rick Rule said: “This is the first time since 1992 that I’ve seen high-quality gold development assets reasonably and cheaply available in the market…” With the summer doldrums fast approaching what is a resource investor to do? While many will head off on vacation and try to avoid looking at… Continue Reading
The Q1 2013 Newmont Mining conference call was about as somber as a funeral procession and company management offered little for investors to get excited about in the future. The senior gold producers have clearly turned their attention to aggressive cost cutting after years of mining cost inflation and terribly timed spendthrift acquisitions of lackluster… Continue Reading
Today’s CoT gold report is clearly the most bullish report in recent memory: Click to Enlarge The small speculator net long position has completely evaporated and even using the “futures & options combined” net positioning, small speculators are at their lowest net long positioning in over a decade. It is important to remember that commercials… Continue Reading
Gold has bounced $130 from its panic low of $1322 last Monday evening. We have read the stories about long lines to buy gold at dealers and jewelers in Asia, and there is no doubt that supply of physical coins in North America is tight. However, should the rebound fail between $1450 – $1500 we… Continue Reading
Billionaire hedge fund manager John Paulson’s latest investor letter is out. He doesn’t comment much on gold, but he does write the following regarding his sizable gold mining positions: “……we believe there will be significant upside when the gold sector revalues.” Given the terrible performance of gold mining shares thus far in 2013, I believe… Continue Reading
A noted trading author, Mark Douglas, once wrote “every moment in the market is unique” – you can definitely say that again! And perhaps there has never been a market dynamic as unique as the current one. We have US equity markets near all-time highs while roughly 80% of global equity markets are in confirmed… Continue Reading
The massive sell-off in the gold market during the last two trading sessions has inflicted well over $1 trillion in losses for global holders of the yellow metal – this is the most “oversold” that gold has been in a very long time: Click to enlarge A few key points about the gold crash: Today… Continue Reading
Today we had a very significant breakdown in the gold market. Market pundits will go through lists of reasons in an attempt to explain gold’s massive plunge below $1500/ounce. While the fundamental reasons are likely to be quite lengthy, the technical explanation is quite simple; gold had tested the $1550 support level multiple times in… Continue Reading
