P. Radomski
CFA, Editor & Founder @ Sunshine Profits
Przemyslaw Radomski, CFA, is the founder, owner and the main editor of SunshineProfits.com. You can reach Przemyslaw at: http://www.sunshineprofits.com/help/contact-us/.
P. Radomski Articles
History rhymes as people tend to react similarly to similar price changes. What we see in gold right now is a repeat of almost a decade ago.
Very little happened in the precious metals sector yesterday, and practically everything that I wrote yesterday and in Monday’s flagship analysis remains up-to-date. Let’s start with a quick update on the GDXJ’s very short-term chart.
In yesterday’s analysis, I wrote the following right below the USD Index charts: This move is in tune with what we saw at previous local bottoms. The RSI moved slightly below 50, and it’s the turn of the month – this combination was enough...
Despite gold’s latest move higher, its outlook remains bearish. If its 2012-2013 pattern is to repeat, it means gold is now preparing for a big fall.
As expected, the Fed raised interest rates again—and Powell's dovish stance was a gift to gold miners. The USD fell, giving the GDXJ more room to rise.
Despite stocks' slight recent fall, their short-term outlook remains bullish. Unless gold truly plunges, junior miners have a chance to rise soon.
As junior miners continue to rise and the USD keeps falling, it seems like a matter of a short time before gold soars. It only needs a proper trigger.
Gold, silver, and miners declined heavily in the past weeks, but it seems that they got too low, too fast, and now a quick rebound seems very likely.
Gold stocks declined by about 31.5%, which perfectly fits my previous analogy to 2008. If history is to rhyme, we can expect a corrective upswing soon.
After the USD dropped in 2021, there was a price increase in both gold and mining stocks. If the situation repeats, gold is likely to continue rising. And, of course - that was a reversal, folks!
