Via Energy and Gold.com: Small speculators more than doubled their net length in gold futures ahead of the ECB’s quantitative easing announcement on Thursday: This is the largest net long position in gold futures that small speculators have had since early July which happened to coincide with an intermediate price peak for the yellow metal. Meanwhile,… Continue Reading

Via Energy and Gold.com: As pointed out a couple of weeks ago gold and gold stocks have been closely following the price pattern from August/September 2012 just before the Fed announced QE3. The analog is now reaching a potentially key inflection point: GDX (June-December 2012) Gold miners as represented by the GDX staged a ~36% rally… Continue Reading

Via Energy and Gold.com Morgan Stanley is out with some interesting research this morning highlighting the strong positive correlation between copper and oil prices: Aside from the fact that both commodities are greatly affected by global economic growth there is another important factor as to why the oil price can end up having a large… Continue Reading

Via Energy and Gold.com: There is an interesting piece on palladium up on Bloomberg this morning entitled “Palladium is a Metal Rarer Than Gold. Now It’s Even More Rare, Thanks to Cheap Oil”. The article makes some logical points regarding global auto demand and the global palladium supply/demand dynamic. The article even includes quotes such as… Continue Reading

Via Energy and Gold.com The rally in gold miners which began in mid-December now measures over 31% and the GDX is threatening to move back above its 200-day moving average for the first time since early September: Given that other ‘bear market rallies’ during the past couple of years have ended at around the 40%… Continue Reading

Via Energy and Gold.com: This morning’s gold rally has formed a highly significant breakout from a multi-month chart pattern bottom: A textbook head & shoulders bottom has formed during the past several months and this morning’s large move higher has formed a breakout above the neckline of this pattern. The measured move target for this… Continue Reading

Via Energy and Gold.com: Copper futures dropped as low as $2.42 yesterday evening before rebounding roughly 5%: One of the world’s largest copper producers, Freeport McMoran (FCX), has been hit especially hard (-11%) this morning after copper’s overnight tumble: A slide from a recent FCX investor presentation is particularly telling: Just 2 months they were… Continue Reading

Via Energy and Gold.com This is from the latest Morgan Stanley “Commodity Manual”: This is part of the gold note contained in this report and also happens to be the sort of consensus sell-side research which offers zero  negative value to its readers. Let’s break down the 3 components of this bearish gold outlook: 1. Oil price… Continue Reading

There is a unique confluence of forces lining up simultaneously in the US dollar now: Commercials have a massive short position in US Dollar Index futures while small speculators have never been longer The US Dollar Index is working on its 7th consecutive up month, the longest streak since 2010 which was coincidentally when the dollar put… Continue Reading

Via Energy and Gold.com: Gold miners (GDX) just completed their biggest weekly gain in nearly a year, finishing up 9.35% for the week on above average volume: Today’s rally also moved the goldies back up to levels not seen since the late-October plunge which brought many gold mining shares to below their 2008 Global Financial… Continue Reading

Via Energy and Gold.com It is now a virtual certainty that the ECB will announce some sort of large scale asset purchase program (LSAP) on January 22nd. What’s not clear is the exact size of the program and which assets will be targeted. There is a lot of speculation calling for the ECB to snap up… Continue Reading

The past week has been a powerful one for gold and gold mining equities: We saw gold dip under $1170 on the first trading day of the year only to reverse $50+ higher during the subsequent 3 sessions The gold miners as measured by the GDX have begun 2015 with a rip roaring 11%+ rally… Continue Reading

On New Year’s Eve I wrote a post titled “Why I Bought Gold Today” in which I discussed some reasons why I purchased February gold futures and highlighted some of the key technical levels that I was focused on. This morning I exited this trade at $1210 for a $25.70 gain ($2570 per futures contract). This gold… Continue Reading

Gold stocks have been working on forming a bottom since the big October crash which took many gold miners to all-time lows and brought the GDX to below it’s 2008 Global Financial Crisis low. As the sector has begun to move back up during the past couple weeks some charts are breaking out from powerful chart… Continue Reading

In case you were under a rock, oil just got crushed. It has dropped close to 50% and most of that was in just the last three months. Let’s pause there. Consider if this happened with another resource, say if the gold price suddenly dropped 50% from the current price of $1,200/oz to $600/oz in… Continue Reading