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Collin starts things off by noting that the HUI chart is in a channel, with a breakout likely occurring at the end of it. Jordan agrees and says everything is indicative of a breakdown in the gold market in the next two to four weeks.
He feels the recent downtrend in the US dollar index should be a bullish sign for gold, despite this gold is way off of it’s recent highs. It’s a bearish indicator since gold stocks have not confirmed the strength in gold or the US dollar weakness. If this had been ten years ago precious metals would be going crazy. This is not bull market action, precious metals normally tend to lead the dollar. Jordan discusses the GDX and the HUI and what he thinks are the downward price targets.
The positive side of this is how gold and silver could be putting in a major double bottom for a very strong future bull market. While it’s hard to believe at the moment, with sentiment being this negative. Jordan says don’t get too emotional about all this, raise some cash, hedge and get defensive, we are looking at incredible buying opportunities coming up over the next six to nine months.
Ultimately we need to see markets enter into a bear period and likely a recession. Lower interest rates and more government spending will then be highly inflationary. The long term fundamentals are bullish, while in the short term things are negative.
Talking Points From This Week’s Episode
• Gold indexes are looking like they could break downwards.
• There is still strong support for the US dollar, it’s cyclical bull market may be intact.
• Recent consolidation activity appears bearish.
• Long term fundamentals are bullish, with opportunities likely arriving in the coming months.
Jordan Roy-Byrne, CMT, MFTA is a Chartered Market Technician and Master of Financial Technical Analysis who is a member of the Market Technicians Association. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for precious metals investors. He is also the author of the 2015 book, The Coming Renewal of Gold’s Secular Bull Market and his 2017 Gold & Silver Outlook which are available for free on his website.
By Collin Kettell for Palisade Radio on June 29, 2017
