Jordan Roy-Byrne – Precious Metals, Bonds, And General Markets Pullbacks Are Getting Closer To A Short-Term Bounce
Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to discuss the continued correction in precious metals sector, in tandem with the pullback in most other markets, and where we may see a bounce. We start off with looking at whether gold could bounce from yesterday’s move down to the $1835 level seen at the start of the surge higher when the Ukraine war began. We then discuss the importance of support holding at the $21.41 level in silver, or it portends a quick move down to around $18.75. However, Jordan outlined that after 9 days of declines that when we’ve seen that kind of selling pressure in silver previously that it markets a bottoming where it had a significant rally, which he thinks is possible in the next month or two.
When considering Fed policy in relation the PMs, bonds, and general market weakness, it seems that the focus for a change in trend will come when the rate hiking cycle needs to be paused and shifted back to cutting rates again. We wrap up with thoughts on the mining stocks with Jordan providing support levels in both GDX and GDXJ where he’d expect a bounce, along with breadth signals he’ll be watching for.
Click here to visit Jordan’s site and keep up to date on what he’s watching on the charts.
If it dips a bit tomorrow, I-80 Gold will be at MaxSat level 5 or (6) low.
Low cap stocks occasionally show up, despite greater gyrations.
Thanks for the heads up BDC. Cheers!
40 year high inflation and gold miners getting slammed.
I guess inflation is killing their costs and when miners kit highs in August 2020 now need $2100 gold to adjust for inflation costs to run mines or for explorers to drill.
If economy goes into recession and stocks continue to make lower highs and lower lows miners will get dragged down also.
Used to hear all these analyst and gold bugs say gold and miners back in 2016-2018 were going to have big bull mkt run now it’s not going to happen till 2024, 25, keep pushing it out, maybe gold hit double top just over $2K and bull is over. Ouch ?????
Yes, that’s the general idea that with higher input costs (labor, steel, concrete, chemicals, etc…) hitting producers bottom lines, and big cost overruns on development projects recently, that instead of the $1900 level being the trigger that got more investors interested, many, including Jordan, feel we need to break to all-time highs in gold, above the $2089 level, to get a breakout in the mining stocks and silver.
A related thesis is that Gold will need to claim $2000 as the new floor (not ceiling) as Dave Erfle has pointed out, to get generalists interested and give people confidence we’ll see higher trending prices in the yellow metal. At $2100+ gold – the margins then expand for producers, and most development projects have better economics to wash out the higher capex requirements.
Also what happen to that 10 year cup and handle pattern, we were suppose to busting out of handle. Don’t hear much anymore.
The 10 year cup & handle pattern is still in play, and nothing has changed on that other than those that were optimistic the handle had been completed at that Gold had started the next impulse leg to higher highs. Now it did go up and get to $2078 two months back, but then failed to break out above the $2089 high, and actually created a mini cup & handle from August 2020 to March of 2022, so the corrective move we are seeing now is the handle on that smaller cup & handle, which still makes up the larger handle of the decade long pattern. Jordan has covered that a number of times, as has Dave Erfle, Craig Hemke, Christopher Aaron, and Steve Penny, so we gave that topic a rest for a little bit to focus more on the shorter term corrective move in the handle of the mini H&S pattern.
Actually, I believe the “cup and handle” is in better shape then ever since for silver it appears we may see a slow mo bottoming in lower prices for awhile which would produce a very nice looking base to the handle in the second half of this year. I mentioned in the past that if we’re going to see a well formed handle we would see the right side of the handle probably start an ascent in 2023 which on the monthly charts would give a nice third ratio to the cup.
Hi Doc – Agreed that the Cup & Handle pattern is looking as good as ever, and when the handle has finally resolved back to the upside, it should point to much higher gold prices in the next 1-3 years.
My favorite form………..cup and handle……… and silver needs to get filled…….
Trend Turn MaxSat Counts: https://tinyurl.com/mt2berap
No embellishments or parameter adjustments.
Friday NatGas pre-market Turn.
Some events noted.
Trend Turn Tables: https://tinyurl.com/yc794bru
These will be maintained for awhile.
MaxSats start tomorrow.
“Friday” above means last Friday.
Goldfinger mentioned an investment area, “medical psychedelics” on ceo.ca. Timothy Leary had the right idea 69 years ago.
Watching the cannabis ETFs going lower and one day they will also be much higher.
Yes both the medicinal psychedelic therapies and cannabis sector was the flavor of the day 2 years back, but both sectors have been under immense downward pressure, and pot stocks are some of the most beat up of any agricultural commodity. I actually added a bit to my POTX and MSOS positions earlier this week.
Again, I-80 Gold Corp continues to crush it with fantastic drill results. If their series of recent news releases were released by some Canadian drill play, the stock would be up double-digits on hits like these.
(IAU) (IAUCF) i-80 Gold Drilling Intersects 7.1 g/t Au over 78.6 m including 10.1 g/t Au over 41.8 m at Ruby Hill
10 May 2022