Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to review shorter-term and longer-term support and resistance levels in the precious metals sector, and why he’s very encouraged by the recent strength in the mining stocks. While the corrective move down in gold did briefly fill that breakaway gap level in gold, in general the yellow metal has held above key $1900 support and the $1920 support on weekly charts, and Jordan would be surprised to see a pullback below $1880 support. We also reviewed the medium-term $2,500 price projection coming out of the smaller cup & handle from August of 2020 to March of 2022, and the longer term $3000-$4000 gold price projection on the longer-term decade long cup and handle pattern that he believes will achieve those targets by 2024.
Next we moved over to silver and that while the technical outlook isn’t quite as bullish as gold, and it has more overhead resistance levels to clear at $28 and that it may take gold breaking out to a new all time high to give silver the push to get over the $30 resistance level and begin the path to $50.
We wrap up with a discussion on the PM mining stocks and the very bullish divergence seen in GDX and GDXJ relative to the underlying gold price, where they bullishly did not fill their breakaway gaps, and over the last few weeks have more white candles and less black candles during a sector correction than gold and silver have had. Jordan employed resource investors to consider where the miners will be trading if gold and silver do break out to new all-time highs over the next 12 months, and believes this corrective move in the PMs may be the last chance to really get quality junior mining stocks cheap. Jordan is focused on positioning in silver exploration stocks and growth-oriented gold producers and developers, with optionality to rising prices.
Click here to visit The Daily Gold website and keep up to date on Jordan’s technical outlook.