by Tekoa Da Silva, Bull Market Thinking:
Greetings and Good Sunday,
Catching most traders and investors by surprise this week was a mild sell-off in gold and sharp sell-down in the miners.
Technical gold trader Gary Savage noted in weekend commentary that these “[Small] declines need to make traders freak out in order to reset sentiment and prepare for the next leg up.” He further noted that this small decline suggests next week we may see a, “Very scary $30-$40 crash day—that will bring gold back down to [its] support zone [at $1350].”
Following that potential crash day according to Gary, gold may be positioned for a run at $1523.
Another item of interest during the week, was a commentary issued by US Global Investors CEO Frank Holmes, who indicated that investors looking for mining company exposure should look for, “Companies [that] have good CEO’s, good geologists out there exploring, or very cost conscientious executives who are running an operation…They’re the companies you have to really focus on.”
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