Gold Didn’t Need Any Special Boost To Reach The New Low

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Gold Didn’t Need Any Special Boost To Reach The New Low
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Although gold had the conditions to rest for a while and fall only a little, it chose a more radical path and hit new monthly lows. Can it move lower?

In yesterday’s video analysis, I emphasized that gold, silver, and mining stocks are moving lower, and that they can do that regardless of the possible rally in the stock market. Let’s start today’s analysis with a look at how perfectly the markets confirmed what I said yesterday.

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Gold

Stocks ended yesterday’s session higher, and in today’s overnight trading, they are moving sideways.

So, theoretically, gold, silver, and mining stocks had a good reason to rally yesterday and do nothing today.

The influence coming from the USD Index is somewhat similar.

Gold

Nothing really happened yesterday, and the USDX is up just slightly in today’s overnight trading. Thus, gold had a good reason not to do anything yesterday, and decline just a little today.

Gold

Gold Reaches New Low

Instead, gold just moved to new monthly lows.

This is not really supported by the moves in either the stock market or the USD Index. It seems that gold simply wants to decline here.

Since it recently broke below a very strong support area (that it then verified as resistance), it seems that gold could fall significantly soon.

While gold is weak, maybe the junior miners are strong?

Gold

While they didn’t move to a new monthly low just yet, it’s clear that their short-term downtrend continues, and the theoretically positive impact of the general stock market doesn’t affect them in the way it “should”. Consequently – that’s right, you guessed it – it seems that junior miners really want to slide once again.

Given the analogy to 2013, it seems that they can now slide really profoundly.

Thank you for reading our free analysis today. Please note that the above is just a small fraction of today’s all-encompassing Gold & Silver Trading Alert. The latter includes multiple premium details such as the targets for gold and mining stocks that could be reached in the next few weeks.

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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.

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Hi, I’m Przemysław Radomski, but please feel free to call me PR. In the next few paragraphs I’ll do my best to describe my personal story and let you know what I can do for you. My adventure with investments began when I was 17 and I received an inheritance, which I then saw as sizable. I knew I couldn’t waste it away, so I focused my educational efforts on gaining financial knowledge, even though I had previously been more inclined towards engineering. My choice in university, a major and minor –in investment banking –, served the goal I had set for myself.
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