Jordan Roy-Byrne – Gold Has Had A Breakout, But Is It A Significant Breakout?
Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to share his outlook on what is being dubbed as a recent breakout in gold and the gold miners, and whether it is a significant breakout. While he agrees it is worth noting that the yellow metal did close above that $1835 resistance, he sees the $1900 target on the monthly and quarterly charts as the much more important line of resistance to break out above for it to be significant. While he is open to the idea that gold could make it up to $1900, or a little above that, on the daily charts in the next few months, he believes the more significant break above that level on the monthly charts will happen next year. Jordan stressed the importance of investors looking at price action and technical analysis on multiple time frames, and look for confirmation of breakouts on the longer duration charts.
Next we reviewed that gold has lagged the moves higher in the general markets and that really we need to see a corrective move in the US equities before more investors will get interest in gold and the precious metals miners. We wrap up considering the question of if the Fed escalated their tapering to finish sooner and then ramps up their rate hike cycle earlier than projected, then could that be a scenario where gold could rise higher in tandem with rising general stock indexes?