After a very rough couple of months for the miners, November has treated the sector quite well with a 24% rally from the early November low: Despite the fact that GDX has rallied 24% in the past 3 weeks the easy part is over. A snapback rally from a capitulation sell-off is par for the… Continue Reading

From Stock Trader’s Almanac: “Gold prices tend to move up prior to the holidays, and the trend has worked especially well over the last 14 years. Seasonally speaking, it is best for traders to go long on or about November 19 and hold until about December 4…..” What’s most interesting about this gold seasonality analysis… Continue Reading

Today was an important day for the gold miners for a number of reasons: GDX broke above the downtrend which began in early September All the large one day rallies in the past few months have been immediately met with selling the following day, today’s action represents a change of character The miners were up… Continue Reading

During the past 18 months we have seen a massive shift in holders of gold. The following 3 charts tell the story quite well: Click to enlarge Retail investors and portfolio managers have dumped more than 1,000 tonnes of gold from gold exchange traded funds during the last two years. Meanwhile central banks have purchased… Continue Reading

Last weekend we pointed out the importance of the week ahead for gold. After a tumultuous start to the week gold found its footing in a big way on Friday and closed the week in impressive fashion: Click to enlarge After posting a series of higher lows gold surged above previous support at $1180 on… Continue Reading

The monthly chart  of USD/JPY (US dollar in Japanese yen terms or ¥ per $) illustrates a massive bear market (bull market in yen) which began in 1998 and ended during the 2nd half of 2011: Click to enlarge Given that USD/JPY is referring to the Japanese yen price of the US dollar, rises in USD/JPY mean… Continue Reading

The following piece from Yahoo! Finance (Michael Santoli) is making the rounds: A final purge to $700? What gold bulls’ surrender might look like. It has a sexy title that draws forth the reader’s curiosity and the piece does a decent job of summarizing the overall state of the gold market in a cogent and to the… Continue Reading

Gold posted a powerful upside move during Friday’s session following dovish comments by ECB President Mario Draghi and a weaker than expected US payrolls report: Click to enlarge Gold (Hourly) The rally stopped just shy of previous support near $1180 while printing a bullish reversal ‘hammer’ candlestick on the weekly chart: The CFTC Commitments of… Continue Reading

I came across an interesting article from Bloomberg this morning with some quotes from some big names on gold: “I don’t care if you are Einstein…..It’s impossible to forecast for a week from now and a year from now.” ~ Peter Munk “Nobody really understands gold prices…..And I don’t pretend to really understand them either.” ~… Continue Reading

West Africa has encountered a series of significant set backs recently, including the outbreak of Ebola and the dissolution of the Burkina Faso political framework.  One place in West Africa that hasn’t been affected by either Ebola or political instability is Ghana.  Fortunately for Asanko Gold (AKG:TSX), their two gold mines – which hold almost 11 million ounces… Continue Reading

Gold miners, as represented by the HUI (NYSE Arca Gold Bugs Index), gapped below their 2008 lows on the open this morning: Click to enlarge This chart is remarkable considering the magnitude and severity of the Global Financial Crisis (GFC) of 2008 and speaks to the depth of the bear market in gold shares we’re seeing today. However,… Continue Reading

The Central Fund of Canada (NYSE:CEF, TSX:CEF.A) is a $3 billion closed-end fund whose sole mandate is to invest in gold & silver bullion. As of yesterday’s market close the Central Fund had 61.1% of its assets in gold bullion and 38.4% of its assets in silver bullion: Click to enlarge CEF trades like a regular… Continue Reading

Mark Dow of the Behavioral Macro blog is out with a thoughtful post titled “Precious Metals. The Second Wave of the Bubble Unwind is Upon Us”.  Dow has been bearish on gold for the past couple of years, and he makes several astute points in his post. Here is a key excerpt: “When I’m asked how… Continue Reading

It is not a coincidence that gold has seen a low of $1161 thus far in today’s large sell-off: Click to enlarge There is a great deal of Fibonacci confluence in the $1154-$1160 area (the 50% retracement of the entire 2003-2011 bull run and the 61.8% retracement of the 2008 low to the 2011 peak).… Continue Reading

For those that haven’t had access to the internet or TV today, the West African country of Burkina Faso’s government has collapsed and is essentially in complete disarray. After a day of violent protests, the military seized power and effectively dissolved the country’s parliament. This is a surprise, coming out of one of the more… Continue Reading