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Gold is tempting support again… Will it hold?

Cory
October 3, 2016

Gold continues it’s slow move back down to the support zone in the $1,300 to $1,308 level. The metal has already bounced off this level 3 times but will this time be when it breaks. With consistent lower highs since early July this market has been waiting to break and Doc and I feel it will be to the downside. If you have cash in your portfolio we will see a good buying opportunity when we find the next support level.

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Discussion
53 Comments
    Oct 03, 2016 03:26 AM

    http://charts.stocktwits.com/production/original_63901149.?1475516872 it depends on the dollar

    CFS
    Oct 03, 2016 03:36 AM

    I believe gold is manipulated by the COMEX. I wonder if Sprott’s introduction of block chain technology for gold trading might affect the ability of the COMEX or LBMA to manipulated the market.
    Do you have any update on their testing of their technology?

    CFS
    Oct 03, 2016 03:42 AM

    I agree with the Doc that the dollar might go up.
    I also believe we will have deflation before inflation, so perhaps the behavior of the dollar is simply inverse correlation with deflation/inflation.

      Oct 03, 2016 03:49 AM

      If it rises only due to yen/euro weakness (rather than its own strength), then gold can easily rise with it.

    LPG
    Oct 03, 2016 03:49 AM
      CFS
      Oct 03, 2016 03:09 PM

      No knowledgeable analyst has said the Fed has been buying stocks, Avi.
      Those in the know, including Mr. Greenspan, have always placed the buying at the feet of the Treasury Dept. (Exchange Stabilization Fund). And the manipulation is not continuous or consistent.

    CFS
    Oct 03, 2016 03:01 PM

    Off topic, but interesting front end monologue on this piece.

    https://m.youtube.com/watch?v=aMiRZ3L_hMU

    Oct 03, 2016 03:40 PM

    What’s going to drive gold, Doc? Easy…the election. They will make sure the dollar drops.

    Oct 03, 2016 03:45 PM

    Beautiful day in the north east…

    Silver (the worlds worst investment) crushed.

    Here we go loop de loo
    Here we go loop de laa

    Oct 03, 2016 03:46 PM

    Ryan, I guess you didn’t read my weekend article?

    Oct 03, 2016 03:54 PM

    Made 4.5% net on DUST today. Bought more NUGT, USLV, SLV, and ASM today.

    Oct 03, 2016 03:55 PM

    Avi Gilbert is a broken record.

    This latest article, aside from being a complete waste of time is just another example of that.

    He continues to lecture as if he is teacher educating his students.

    Regarding the FED buying equities and Janet Yellen’s comment that
    “The FED is not allowed to buy equities”

    First, whether or not the FED is actually buying equities or not – does the fact that she says they can’t actually convince people that they aren’t.

    Is he that naive?

    Does is really matter what she says?

    She and does say anytinhg, every FOMC meeting she talks out of both sides of her mouth, so anyone who actually listens to what she is saying really needs to have his head examined.

    Once again Avi is wrong, instead of being the teacher he needs to be the pupil.

    Now as far as actually buying equities – yes they are m indirectly.

    This guy is annoying.

    Oct 03, 2016 03:57 PM

    Matthew, did you miss the 2015′ 2014 and 2013 columns?

    And ps, the year ain’t over

      Oct 03, 2016 03:06 PM

      It’s 2016, James. The bear market is over even if the current correction is not.

      It is comical that you are so negative about an asset that has absolutely crushed stocks and bonds since 2000 and is now resuming its secular bull market.

    Oct 03, 2016 03:08 PM

    “I don’t think anyone was prepared for the collapse in the metals prices,” he said.

    Those were the words of Rob McEwen, chairman and chief owner of McEwen Mining, symbol MUX.

    Let’s examine HIS WORDS, NOT MINE…

    first he said it was a COLLAPSE, not a correction, not a pullback, not a cyclical bear market in a secular bull market.

    He, one of the smartest men in the mining industry called it a COLLAPSE.

    Good investments don’t COLLAPSE and keep collapsing.

    Second he said NO ONE WAS PREPARED…

    so I don’t want to hear guys who keep shooting off from the mouth about they had it all perfectly timed.

    These arguements are over.

    It is what it is, face up to it.

      Oct 03, 2016 03:09 PM

      You’ve made no point with Rob’s words, James. I sold a lot of gold into that spike whether you want to believe it or not. Others did better than I did and sold a lot more and even went short. Sorry if you didn’t know what extremely overbought looks like but you probably wouldn’t have sold even if you did.

      Oct 03, 2016 03:21 PM

      Rob McEwen did not sell any of his gold stocks during the collapse of gold from 1920 to 1030. He knows gold is going to 5K so he held on. And he is smarter and richer than anyone else on this website.

    Oct 03, 2016 03:29 PM
    Oct 03, 2016 03:44 PM

    Gold just got to far above the 200 day average so it should come down to the 1250 to 1260 area. I took a loss in GDX 2 cents from the top on a spike up at the open and things got much worse after. I will just stick with oil.

    Oct 03, 2016 03:52 PM

    Nicola Mining Inc. Enters Into Exploration and Material Purchase Agreement (Teck)
    VANCOUVER, BRITISH COLUMBIA–(Marketwired – Oct. 3, 2016) –

    “Nicola Mining Inc. (NIM) (HUSIF) is pleased to announce that it has entered into an Exploration and Material Purchase Agreement = with Teck Highland Valley Copper Partnership (“HVCP”), a wholly owned subsidiary of Teck Resources Limited.”

    “Nicola Mining Inc. owns 100% of the Thule Copper Property that covers 10,084 hectares along the southern end of the prolific copper-rich Guichon Batholith. The Property is located approximately 20 kilometres south of the Highland Valley Copper mine, the largest open pit copper mine in Canada which is also located within the Guichon Batholith.”

    http://www.marketwired.com/press-release/nicola-mining-inc-enters-into-exploration-and-material-purchase-agreement-tsx-venture-nim-2163317.htm

      Oct 03, 2016 03:57 PM

      “Nicola Mining Inc. is a junior mining company listed on the TSX Venture Exchange, and is in the process of recommencing mill feed processing operations at its 100% owned state-of-the-art mill and tailings facility, located near Merritt, British Columbia. It has already signed four mill profit share agreements with high grade gold producers. The fully-permitted mill is able to process both gold and silver mill feed via gravity and floatation processes. The Company also owns 100% of Treasure Mountain, its high grade silver property, and a gravel pit, which is located adjacent to its milling operations.”

      http://nicolamining.com/

    b
    Oct 03, 2016 03:54 PM

    It looks to me that demand for metals fell enough to bring the price down.
    Watching demand from the mints sorta shows that.
    Another clue is the sales by retailers.
    Low demand….maybe it changes.

    b
    Oct 03, 2016 03:58 PM

    My view is to own the amount of phyzz you figure is needed to “cover your butt” should paper collapse.
    Might be the same thing with Bitcoin.
    But once you have what is needed, why own more?

    There are other investments around, shares maybe.

    Oct 03, 2016 03:32 PM

    Desperate Uranium Miners Switch to Survival Mode Despite Nuclear Rebound
    COMMODITIES | Mon Oct 3, 2016

    http://www.reuters.com/article/us-uranium-nuclearpower-idUSKCN1230EF

      LPG
      Oct 03, 2016 03:15 PM

      Thanks for the U3O8 article, Capitan Shad.
      Best,
      LPG

      Oct 03, 2016 03:47 PM

      That’s funny, I posted that article here this morning.

        LPG
        Oct 03, 2016 03:52 PM

        Matthew,

        Couple of things:

        1) you’re not Capitan Shad 🙂
        2) saying the obvious, I obviously didn’t see your post in the first place
        3) I don’t listen to everything on KER nor read everything that’s posted –> hence the 2 )
        4) Hilly style: “What difffffffffff-erence does it make” ? 🙂 🙂 🙂

        Hope all’s good & Best as always,

        LPG

          Oct 03, 2016 03:10 PM

          Ha! I just now got back around to reading this. Thanks LPG.

          Matthew – sorry for the double post, as I didn’t see you post that article earlier. I saw it elsewhere and just thought I’d put it up on the KER. Thank you for posting it as well.

          Oct 03, 2016 03:01 PM

          No worries fellas.

          LPG, I did not mean to suggest that it makes any difference or matters in any way. I said it was “funny” because, of all the tons of article that fly across our screens (mine, anyway), we both happened to post the same one. Had it come from 321gold instead of Reuters, it would not have been a surprise at all.

          https://www.youtube.com/watch?v=9-8Rn_W0TJU

          !!! 😉

        LPG
        Oct 03, 2016 03:56 PM

        and
        5) thanks for posting it 😉
        LPG

    Oct 03, 2016 03:09 PM

    This was actually a very good read, if you want to keep perspective for the Fall of 2016, as it appears that gold, silver, and the PM miners may have a couple days-to-weeks of further downside.

    2017: Gold and Silver’s Year of “Public Recognition”
    David Smith is Senior Analyst for TheMorganReport.com

    https://www.moneymetals.com/news/2016/09/28/gold-silver-public-recognition-000929

      Oct 03, 2016 03:14 PM

      Brian – Thanks for the article from the analyst at TMR.

    Oct 03, 2016 03:33 PM

    GAry Savage dollar is due for a drop and gold a pop. Opposite of Doc and the kid that calls “stooocks”

      Oct 03, 2016 03:35 PM

      +1

      Oct 04, 2016 04:25 AM

      Sounds nice, but we are seeing the exact opposite of that this morning. The dollar is rising and Gold is dropping.

      Oct 04, 2016 04:59 AM

      Gold did break $1300 and $1275 today so good call Doc & Cory!

      Gold currently at $1270.90.

        Oct 04, 2016 04:00 AM

        US Dollar is up $.43 to $96.18

    Oct 03, 2016 03:53 PM

    Cameco is headed to court with The CRA (Canada Revenue Agency) over serious tax avoidance of 2.2 billion dollars. It could soon hit single digit stock numbers.
    http://business.financialpost.com/news/cameco-and-the-cra-head-to-court-over-potential-2-2-billion-tax-dispute

      Oct 04, 2016 04:49 AM

      Agreed DT. Cameco is in a mess, and this only underpins the theme of the complete unraveling of the Uranium space. Paladin has mine clean up issues. Energy Fuels did their recent capital raise with that bearish letter to shareholders and tanked their pricing, Canalaska didn’t find the diamonds they were hoping for in their JV with DeBeers, but investors have priced down their Uranium exploration, Uranium Resources have added in Lithium to their U3O8 mix, and NexGen (the flagship exploration stock of the Athabasca Basin) has taken it in the shorts and corrected very hard over the last few months.

      Personally, I’ve made some good money in the Uranium space these last 2 years by trading in and out of companies, but this recent draw down finally caught me off-sides and now I’m underwater in this sector. I was thinking the worst was behind us in late 2015 and early 2016, but now Uranium is taking it’s final plunge…. In retrospect, I wish I’d have waited until now to go shopping for companies on the clearance sale because the valuations are simply mind-boggling. I think we’ll see production drop off to a screeching halt, and there will be a bottom created by supply destruction. Then in 2017-2019, when the new longer term off-take agreements are negotiated, the prices will finally jump back up to the the cost of production $40-$60 spot. Until then, it will be zombie land…..

    Oct 04, 2016 04:42 AM

    Gold and miners! The Horror!!

      Oct 04, 2016 04:43 AM

      The Horror arrived in October ….. right in time for Spooktacular Halloween…..

    b
    Oct 04, 2016 04:54 AM

    pot shares, hoooorayyy.

      Oct 04, 2016 04:43 AM

      Yeah – I saw that pot stocks were up today. Green gold is up on a day where Gold is in the Red.