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An Important Low for Gold and Gold Stocks?

by Jordan Roy-Byrne, The Daily Gold:

Gold and gold stocks bounced to end the week thanks to an oversold condition coupled with a softer than expected jobs report which likely delays Fed action until December. At one point this past week the market had priced in a 64% chance of a single rate hike by December and a 42% chance of a rate hike this month. A single rate hike is not going to derail the young bull market in precious metals and as long as the lows of this week hold then the bull market is in position to grow stronger by the end of the year.

Gold this week was able to successfully hold $1300 to $1310 for the third time in the past two months. The daily candle chart below shows how resistance in the spring has become support in the late summer. If Gold can retake $1350 on a weekly basis and $1360 on a daily basis then it would be setup for the next leg to new highs for 2016. Note how the recent two month consolidation held support and did not even test the 50% retracement of the previous advance.

Turning to the miners, we see that they closed the week above a key support level, the 2014 highs. Both GDX and GDXJ, which declined 21% and 22% from their highs closed the week forming bullish reversal patterns (hammers). Miners could continue to rebound towards immediate resistance at GDX $30 and GDXJ $50. That resistance should hold on the first test.

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1 comment to An Important Low for Gold and Gold Stocks?

  • tomche

    It never ceases to amaze me how many people think they can predict – in any way and with any certainty – the price of precious metals (or anything else that is “market related”), as long as the existing paradigm of this “system” remains in power. You cannot. Anyone telling you different is dilusional. By definition, you cannot because: ALL MARKETS ARE 100% MANIPULATED. PERIOD.

    I guess some people anticipate the demise of such control and therefore feel empowered to espouse a prediction or direction of this or that, but the truth is that this too is just a guess. They can only react. They do not know. Because they have no power.

    Other people more powerful than us, control markets. Will this be forever? I don’t know. But if they have this level of control now, what makes you think there is any weakness within the power elite? Because it’s “so outside the “norms”? Because the existing numbers are so out of whack as to what was normal in FREE markets?

    Don’t get me wrong, I want these scum sucking psychopaths to burn in hell, but NO ONE has a clue as to the inner workings of these psychopaths…even the evangelised and much-respected Andy Hoffman. We just don’t know. That’s what I know for sure: WE DON”T KNOW.

    Just when we think they cannot push the market further, they do. Just when we think we have them figured out, we don’t.

    “Economic mother nature”, as Andy is fond of saying, may indeed have immutable laws, but who’s to say that one cannot bend them a few more years or decades before they break? With Global central banks colluding and all governments and their disgusting, corrupt politicians playing along….who’s to say they can’t cooperate and extend this bad play 10 more years?

    If one thing breaks, they just tweak the laws to make what was previously illegal, legal – and repress the people further.
    And let’s not forget the dumbed down public – especially in the USA – and the complete and total control of the fully corrupt MSM, Hollywood and everything that a human interfaces with. It’s all manipulated ….and the VAST majority just don’t care.

    So, there you have it. They don’t care! We are most definitely pushing a log up a steep, steep hill…

    I wish it were different, but it’s not. I hope it get’s better….and that’s from the heart.

    Personally, I will always do ALL I CAN to expose and educate, just as Sean has here at SGTREPORT.COM – and doing a damn good job…(Thanks Sean…)

    Sorry to digress so. The headline was about predicting the price of gold…at least you know that’s ridiculous – and unimportant – as long as these psychopaths are in power…because you have no power.

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