Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to discuss his technical outlook on gold, GDXJ, silver, and their eventual divergence from US equities. We start off discussing the key support level gold has pierced below, and where support may come in. The trend has clearly been down over the last few months, and Jordan provides some key technical support levels that we need to be watching for to signal where a turn may occur.
We also discuss, when looking at silver’s recent outperformance of gold, there is still a small potential that we could be seeing the early stages of a non-confirmation bottom in gold. However, with the weakness in the PM mining stocks, like GDXJ, and the expected lower levels to come in the S&P 500 and in gold, then Jordan still believe silver will roll over and make one more move lower before bottoming after gold does.
With regards to the general equities, a key technical level remains the 40 month moving average and them staying below that level, to ultimately show they are in a secular bear market. Out of that market correction, and liquidity event, that should provide the leverage for precious metals to recover faster and begin to diverge and embark on a true secular bull market.
Click here to visit The Daily Gold website and keep up to date on Jordan’s technical outlook.
Shad and I are attending the upcoming New Orleans Investment Conference on October 12-15. We love to see you there! It’s a great way to meet company management and spend some time in New Orleans. Click the link below to register and please let us know if you will be there so we can meet up.