David Erfle - Gold Market Commentary – Tue 4 Feb, 2020

A focus on the moves in gold and gold stocks

Dave Erfle and I focus on the selloff in gold and the gold stocks. Juniors are not doing much in the move down which continues to be the story for those stocks. Overall this selloff was expected so we focus on the levels to watch during this correction.

Click here to visit Dave’s site and learn more about his newsletter.

View related posts on: , , ,

Comments:
  1. On February 4, 2020 at 11:40 am,
    Ebolan says:

    HAH! YOU BOYS GOTTA SEE THIS!

    Clueless DemonRat Buttgoo buyer’s remorse! Freaking hilarious!

    DemonRat primaries, WHAT A CLOWN SHOW!

    https://www.mediaite.com/news/watch-iowa-voter-freaks-out-on-buttigieg-precinct-capt-after-finding-out-mayor-pete-is-gay/

    • On February 4, 2020 at 11:55 am,
      Paul says:

      Fact of the matter is juniors are not going to make money like we want until there is inflation, not counting the big moves due to drill results.
      This sector needs inflation. All these people listening to these gold newsletter guys have lost out on the big profits last 3 years in stock mkt. I do agree that you need small portion of portfolio in gold sector, but we have been listening to lot of these experts calling for great profits when gold takes off and that was when gold was at 1250, now we are comfortable above 1500 and unless you had cyrstal ball most gold juniors need 1800 gold and true breakout for most miners to show kind of moves we want, and lot of gold bugs loading up since 2016 and missed out on stock mkt because these guys talking up bull mkt in gold.
      Same old story. Load up when inflation poaks it head and then you will have plenty time to make money in miners.
      Just my thought.

      • On February 4, 2020 at 12:18 pm,
        cfs says:

        Of Course, Paul, we have inflation.
        We HAVE HAD MONETARY INFLATION for decades. The money supply approximately doubles every decade. The stock market roughly follows that trend with gross fluctuations above and below trend. Public opinion is partly based on real news, partly on fake news, but causes the fluctuations.
        We are headed to $1600 gold shortly. I just see our present downtrend as public fear as we approach yet another round number, but opinion will change with the next disaster or economic problem.

      • On February 4, 2020 at 12:22 pm,
        Matthew says:

        Bull markets in the gold miners are driven by rising profitability in the sector and we’ve had that for awhile now. As for inflation, we have that too. That’s why gold is up 50% since the bear market low and 22% since last May.
        GDXJ is still up 27% versus the stock market since last May:
        https://stockcharts.com/h-sc/ui?s=GDXJ%3ASPY&p=W&yr=2&mn=8&dy=0&id=p23397039313

      • On February 4, 2020 at 1:25 pm,
        Matthew says:

        Ross Beaty: I’ve Never Seen Better Macro Fundamentals for Gold
        https://www.youtube.com/watch?v=17mI7jscf9E

        (I agree with Ross; the prospects for gold have never been better.)

    • On February 4, 2020 at 12:05 pm,
      cfs says:

      If she voted uninformed about his sexual preferences, one has to wondered how informed she is about any politics.

      • On February 4, 2020 at 12:59 pm,
        Ebolan says:

        How informed is she? It boils down to “FREE STUFF!”

        • On February 4, 2020 at 1:28 pm,
          Matthew says:

          That’s right. She has no problem with the immorality that is theft.

    • On February 4, 2020 at 7:14 pm,
      Ebolan says:

      HAH! YOU BOYS SEE THAT VIDEO?

      The clueless Demonrat who had Buttgoo remorse says this…about her vote for Buttjig…

      “It all went right down the toilet is where it all went.”

      If you don’t believe it listen to it or read the subtitles! That’s hillarious! She’s a Fececrat who voted for Buttgoo…of course it went right down the toilet! 🙂

      The DemonRat clown show…never a dull or absurd moment!

  2. On February 4, 2020 at 3:40 pm,
    Ebolan says:

    INCOMEPETENT AND CORRUPT DEMONCRATS CAN’T EVEN GET THEIR LIES STRAIGHT…ERR..SORRY, CAUCUS RESULTS OUT!

    They have “parital” results which show Buttgoo leading…poor Uncle Joe…ain’t even beating PokeyHauntUs!

    But who knows? They can’t get the numbers straight.

    You bet they will shriek RUSSIA!

  3. On February 4, 2020 at 3:46 pm,
    Ebolan says:

    Just to be safe…you boys may want to stay out of Fecefornia for a while…

    https://moneymaven.io/mishtalk/economics/coronavirus-can-spread-in-poop-and-on-doorknobs-XYwDYwCqXkGMHAFuYw1ZAA

  4. On February 4, 2020 at 4:03 pm,
    Ebolan says:

    Hah! You boys see this. Buttjig declares victory and gets outta Dodge….just what Trump ought to do in Afghanistan…lol

    What a Demonrat clown show!

    The chaos was met by anger from the candidates’ campaigns – except Buttigieg, who declared victory and got out of dodge.

    https://www.zerohedge.com/political/iowa-caucus

    • On February 4, 2020 at 4:13 pm,
      OOTB Jerry says:

      In Buttjig’s arrangement, …….since he is married…….is he the wife or the husband….

      • On February 4, 2020 at 4:19 pm,
        Ebolan says:

        Jerry…you’re back…hope you didn’t get bit by the wild monkeys in Rubioville…anyway, to answer your question…wife or husband??? Tough call…maybe neither wears the pants in that family…they are interchangeable.

        • On February 4, 2020 at 4:21 pm,
          OOTB Jerry says:

          If, Buttjig…..is the wife,……we could have our FIRST WOMAN PRES….so to speak… 🙂

  5. On February 4, 2020 at 4:05 pm,
    Ebolan says:

    Speaking of Afghanistan, this is just pathetic…and their are idiots arguing we gotta stay there…and sink hundreds of billions more into that Hell hole.

    https://www.theamericanconservative.com/state-of-the-union/take-a-whiff-of-failure-more-heroin-attacks-and-hunger-in-afghanistan/

    • On February 4, 2020 at 4:12 pm,
      OOTB Jerry says:

      Roman Empire at it’s best……………….lol

  6. On February 4, 2020 at 4:09 pm,
    Nigel says:

    My gut feeling is that gold will go all the way back to 1450 but that will be the final low before it goes much much higher. I’ve thought that since it shot up in late Dec, early Jan. Don’t know why but I’ve rarely felt so definite about what will happen in the market

    • On February 4, 2020 at 6:33 pm,
      buzz says:

      Dude, you must live in your parent’s basement. Then again, you could be right….

      • On February 5, 2020 at 12:20 am,
        Miklo says:

        Many great minds started their buisnesses in (CIA) basments/garages/dorms.
        Take Gates, Zuckerberg for example. Best taxdollars spent ever by The Firm…

  7. On February 4, 2020 at 8:06 pm,
    Ebolan says:

    Hey Jerry…you still out there?

    If so, you see this?

    Not only is PokeyHauntUs a fake Indian…she’s a fake Green…no flying with the proles for her…not even first class…poor Gretta must be crestfallen…

    https://www.zerohedge.com/political/elizabeth-warren-tries-disappearing-act-after-being-caught-exiting-private-jet

  8. On February 4, 2020 at 8:08 pm,
    Ebolan says:

    Jerry, how’s your Espanol?

    You can bet the libtards will make sure this spreads to the rest of the country…

    https://www.zerohedge.com/political/unraveling-californias-quick-complete-demise

    • On February 5, 2020 at 9:06 am,
      OOTB Jerry says:

      Must be time to invade Mexico ………steal the silver and call it our own…. 🙂

  9. On February 5, 2020 at 10:07 am,
    Miklo says:

    Matthew, you were spot on KL! Good job!
    Not so good job for me though… i holded on to it.

    Do you have an updated chart? It looks very oversold right now. On the Daily the RSI is at the lows as well as Slow stoch. On the weekly it seem to have further to go on the downside.

    Whats your take?

    Cheers!

    • On February 5, 2020 at 10:25 am,
      Matthew says:

      Miklo, we’ve got a waterfall decline in progress that looks like it could take it to about 35.75 before there’s even a bounce.
      https://stockcharts.com/h-sc/ui?s=KL&p=D&yr=1&mn=0&dy=0&id=p63721250266&a=621266591

    • On February 5, 2020 at 10:32 am,
      Matthew says:

      A move down to the 150 week MA is possible (not yet probable, in my opinion) but it could take awhile. I expect all rallies to be sold hard in the weeks ahead.
      https://stockcharts.com/h-sc/ui?s=KL&p=W&yr=4&mn=2&dy=0&id=p35501719289&a=717347508

    • On February 5, 2020 at 11:41 am,
      Matthew says:
      • On February 5, 2020 at 12:02 pm,
        Miklo says:

        The fundamentals are great but with the big short interest and the gold not breaking out is making the stock go down. We have seen this action before with big declines, but this decline is exacurbated by the big short positions.

        Do you think it is wise to add to the position? I´m only down 6,7%, This stock is becoming a major with large reservs so I don´t Think it will crash and burn.

        • On February 5, 2020 at 12:51 pm,
          Matthew says:

          Long term, I’m sure KL will do well but I would rather buy one of the numerous better deals out there. KL is a “victim” of its good quality right here. In other words, it had become technically extremely overbought as it outperformed the gold stocks universe for a long time. So this negative action is not due to anything negative about the company itself. It is similar to Claude Resources at the beginning of 2016. It had already delivered more than a ten-bagger by the time everything else was ready to begin their own moves.
          If you do want to buy more KL, I’d consider waiting for a better risk/reward setup.

          Frankly, I’d even buy SILJ instead unless you want a gold-focused replacement (of which there are many good ones).
          https://stockcharts.com/h-sc/ui?s=SILJ&p=D&yr=1&mn=5&dy=0&id=p04911406206&a=718724433

          • On February 5, 2020 at 1:12 pm,
            Miklo says:

            Thanks Matt, I really appreciate your wise words!

            The problem is that we in Sweden/EU (damn f***ing communist EU) cant buy american and canadian ETF:s due to their “lack of informing of their fees”. Have you ever heard something so crazy? What its all about is that they don´t want competiotion.
            Sure there are international online-brokers but its not convenient.

            Anyway, thanks again!

          • On February 5, 2020 at 1:59 pm,
            Matthew says:

            You’re welcome Miklo.
            Isn’t it amazing how leftists everywhere want their government to act as their mommy? F***ing communists indeed!