Investorideas.com

Call 800 665 0411 to learn about our services

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS



Share on StockTwits

Have Miners Decided Gold's Next Move?

 

December 12, 2022 (Investorideas.com Newswire) Gold moved slightly higher, silver soared, but miners declined on Friday. If it's not a screaming short-term signal, I don't know what is.

In other words, Friday's session served as a perfectly bearish confirmation of what we've been writing throughout the previous week.

Let's take a look at what happened on the markets. The below 4-hour candlestick chart features junior gold (and silver) miners, gold, and silver, through their proxies: GDXJ, GLD, and SLV ETFs.

I'm using the ETFs for all those markets so that the opening and closing hours of each candlestick are identical and can thus be really comparable.


The key thing that you can see above is that the way in which those three parts of the precious metals market behaved on Friday differed considerably.

While gold was more or less neutral, silver moved much higher, while gold miners moved... Visibly lower. In particular, it was the final few hours of Friday's session (last candlestick) that made the difference.

If used horizontally, green lines make it easier to compare the most recent performance to the early-December high. And:

  • The GLD ended the previous week very close to that high.
  • The SLV ended the week above that high.
  • The GDXJ ended the week well below that high.

This means that silver was just particularly strong relative to gold, and miners were just particularly weak relative to gold.

Gold miners tend to be early in a given move, while silver prices tend to lag / catch-up in the final parts of the move. That's what we've been able to see on the precious metals market for many years. Naturally, there were exceptions, but the above rule still holds for the majority of the time, especially when it's both silver-gold and miners-gold links that point to the same thing.

Now, the miners-gold link suggests that a new downtrend is starting, because miners were weak relative to gold to a big extent.

The performance of the silver price, on the other hand, suggests that the rally is coming to an end, as it is clearly playing catch-up. In fact, that's what we also see in today's pre-market trading (chart courtesy of https://silverpriceforecast.com).


Silver corrected much more of the recent immediate-term decline than gold did, which confirms the indications from Friday's session.

Taking the above together points to a situation in which we are seeing a top in the precious metals market.

No surprise, the precious metals sector has recently been very strongly negatively correlated with the USD Index, which appears to have formed a major bottom.


The USD Index corrected back to its 2016 and 2020 highs, and it verified them as supports. The medium-term uptrend is now likely to resume.

And since both: gold, and the stock market have been correcting along with the USD Index (in the opposite direction, of course), as the correction in the USDX is over, it seems that the corrective downswings in gold and stocks are also ending.

All in all, it seems that the next big move in the precious metals market is going to be to the downside, and that it's about to begin. In fact, in the case of the mining stocks, it seems to be already underway.

Naturally, the above is up-to-date at the moment when it was written. When the outlook changes, I'll provide an update. If you'd like to read it as well as other exclusive gold and silver price analyses, I encourage you to sign up for our free gold newsletter.

Thank you.

Przemyslaw Radomski, CFA
Founder, Editor-in-chief
Sunshine Profits: Effective Investment through Diligence & Care

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.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp







Gold Mining Stocks - Gold Mining Stocks Directory, Gold Stocks News, Research and Resources

Gold-MiningStocks.com - investing ideas in gold and mining stocks

Like Gold Stocks? View our Gold / Mining Stocks Directory

Get News on Mining Stocks