Jordan Roy-Byrne
Author, CMT, and Editor @ The Daily Gold
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets. He is also the author of the 2015 book, The Coming Renewal of Gold’s Secular Bull Market which is available for free. TheDailyGold.com was recently named one of the top 50 Investment Blogs by DailyReckoning and WalletHub.
Jordan Roy-Byrne Articles
Precious Metals have enjoyed their best rally since the spring but are approaching significant resistance levels. After trading as high as $1791, Gold has fallen back to $1740.
The evidence argues that the cyclical bear market in precious metals is likely over. We will only know for certain once prices are much higher. Such is the reality of markets. Therefore we need to rely on the weight of the evidence.
Last week I wrote about the numerous positive divergences building in precious metals. On a near-term basis, Gold looks the worst of the group. But that can be a good thing.
Positive divergences within a downtrend are important because they can precede a bottom and trend reversal. Our most recent editorial noted some positive divergences in the gold market.
Although precious metals have rebounded, some consternation remains that they could be headed much lower before a major bottom. However, when one considers the fundamental backdrop, one will realize that a major turn is soon at hand.
In this article, I will briefly examine Gold’s technicals, fundamentals, and sentiment to hazard a guess at when and where the major turn will be. It is vital to consider all three tools to build a case.
Gold is breaking down technically. There’s no denying it. Gold has already closed at a fresh 52-week and 2-year low in daily and weekly terms. It needs to close above $1715 at the end of the month to negate a monthly breakdown.
It has been a very rough time for precious metals. In recent months they have endured another terrible selloff that feels like a combination of 2013 and 2008. However, think about how they “looked” technically before major bottoms, like...
One reason the history of markets is fascinating is that we can glean clues about the future. History does not always repeat itself, but it often rhymes. For precious metals, the last six years lack a strong comparison.
Regular readers by now are familiar with Gold’s fundamental drivers and the influence of the stock market. Falling and or negative real interest rates are the fundamental driver for Gold and are usually a byproduct of a weak stock market...
