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
Gold’s performance in real terms is important for two reasons. First and foremost, it tends to be a leading indicator of the Gold price. That is instructive when Gold is rebounding but has yet to gain real traction or momentum.
Real Interest rates are the key driver for precious metals. Specifically, declining real interest rates and negative real interest rates drive precious metals higher.
Precious Metals traded up to the resistance levels we noted a week ago but reversed lower to start the week. Precious metals have rebounded with the broader market. There needs to be a transition in which they lead and perform in real...
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.
