Best of the Week
Most Popular
1. Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - Nadeem_Walayat
2.Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - James Burgess
3.Gold Price Trend Analysis - - Nadeem_Walayatt
4.The Beginning of the End of the Dollar - Richard_Mills
5.Stock Market Trend Forecast Update - - Nadeem_Walayat
6.Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - Troy_Bombardia
7.Precious Metals Sector: It’s 2013 All Over Again - P_Radomski_CFA
8.Central Banks Have Gone Rogue, Putting Us All at Risk - Ellen_Brown
9.Gold Stocks Forced Capitulation - Zeal_LLC
10.The Post Bubble Market Contraction Thesis Receives Validation - Plunger
Last 7 days
Stock Market Detailed Map Of Expected Price Movement Before The Breakout - 18th Oct 18
Determining the Outlook for Gold Mining Stock - 18th Oct 18
Investor Alert: Is the Trump Agenda in Peril? - 18th Oct 18
Stock Market is Making a Sharp Rally After a Sharp Drop. What’s Next? - 18th Oct 18
Global Warming (Assuming You Believe In It) Does Not Affect Gold - 18th Oct 18
Best Waterproof Compact Camera Olympus Tough TG-5 Review - Unboxing - 18th Oct 18
Silver's Time Is Coming - 17th Oct 18
Stock Market Volatility Breeds Contempt - 17th Oct 18
Gold 7-Year Bear Market Phase Is Over - 17th Oct 18
Gold - A Golden Escape - 17th Oct 18
Tec Stocks Sector Set For A Rebound? - 16th Oct 18
Real Estate Transactions are Becoming Seamless with Blockchain-Powered Data Sets - 16th Oct 18
Important Elements of a Viral Landing Page - 16th Oct 18
Stephen Leeb Predicts 3-Digit Silver and 5 Digit Gold?! - 16th Oct 18
BREXIT, Italy’s Deficit, The EU Summit And Fomcs Minutes In Focus - 16th Oct 18
Is this the Start of a Bear Market for Stocks? - 16th Oct 18
Chinese Economic Prospects Amid US Trade Wars - 16th Oct 18
2019’s Hottest Commodity Is About To Explode - 15th Oct 18
Keep A Proper Perspective About Stock Market Recent Move - 15th Oct 18
Is the Stocks Bull Dead? - 15th Oct 18
Stock Market Bottoms are a Process - 15th Oct 18
Fed is Doing More Than Just Raising Rates - 14th Oct 18
Stock Markets Last Cheap Sector - Gold - 14th Oct 18
Next Points for Crude Oil Bears - 13th Oct 18
Stock Market Crash: Time to Buy Stocks? - 12th Oct 18
Sheffield Best Secondary School Clusters for 2018-19 Place Applications - 12th Oct 18
Trump’s Tariffs Echo US Trade Policy That Led to the Great Depression - 12th Oct 18
US Dollar Engulfing Bearish Pattern Warns Of Dollar Weakness - 12th Oct 18
Stock Market Storm Crash, Dow Plunges to Trend Forecast! - 12th Oct 18

Market Oracle FREE Newsletter

Trading Any Market

Precious Metals Monthly Charts

Commodities / Gold and Silver 2017 Oct 03, 2017 - 09:23 AM GMT

By: Jordan_Roy_Byrne

Commodities

The precious metals sector started September with a bang. Gold, which had already eclipsed $1300/oz, pushed to $1360/oz while Silver broke its downtrend line (from its late 2012 and 2016 peaks). Unfortunately, precious metals would soon reverse course and more. Gold ended September down nearly 3% and below $1300/oz. Silver lost 5% and its breakout. The gold mining indices (GDX, GDXJ, HUI) lost 7% to 8%. The monthly charts argue the major breakout from multi-year bottoming patterns will have to wait until 2018 at the soonest.


Gold’s bearish September reversal occurred at multi-year resistance. On a chart showing daily or weekly closing prices, Gold’s highest close in September occurred at the resistance line connecting its early 2014 and 2016 highs. In addition, Gold opened near $1330 (critical monthly and quarterly resistance), traded above it but then closed well below it. While it is difficult to see, Silver opened very close to key resistance at $17.80, traded up to $18.29 (near major monthly resistance) but closed the month well below $17.00. Silver failed in a resistance area that has been very important (note the arrows) for the past 10 years. Gold failed at a level that has been important since 2014.

The miners like the metals also failed at important resistance levels. GDX opened September around resistance at $25, traded above it briefly but closed the month down at $23. GDXJ tested resistance at $37 but closed the month down at $33. The monthly candle charts below show the importance of GDX $25 and GDXJ $37. A monthly close above those levels could trigger a major leg higher. However, the monthly charts argue that scenario is not close at hand.

The monthly charts for Gold, Silver and the gold mining stocks show a failure at important resistance and that implies over the months ahead the precious metals sector will remain in its complex, multi-year bottoming pattern. The negative technical outlook is not a surprise as the Federal Reserve is likely to tighten policy and the extremely oversold US Dollar begins a rebound. Simply put, precious metals are not yet ready for primetime. They could be waiting for a sustained rise in inflation or a serious equity market correction. Our goal is to buy value with a catalyst or buy very oversold conditions within the junior space. This action has served us well since last December and should continue to work well over the weeks and months to come. To find out the best buys right now and our favorite juniors for 2018 consider learning more about our premium service.  

Good Luck!

Email: Jordan@TheDailyGold.com
Service Link: http://thedailygold.com/premium

Bio: Jordan Roy-Byrne, CMT  is a Chartered Market Technician, a member of the Market Technicians Association and from 2010-2014 an official contributor to the CME Group, the largest futures exchange in the world. He is the publisher and editor of TheDailyGold Premium, a publication which emphaszies market timing and stock selection for the sophisticated investor.  Jordan's work has been featured in CNBC, Barrons, Financial Times Alphaville, and his editorials are regularly published in 321gold, Gold-Eagle, FinancialSense, GoldSeek, Kitco and Yahoo Finance. He is quoted regularly in Barrons. Jordan was a speaker at PDAC 2012, the largest mining conference in the world.

Jordan Roy-Byrne Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules