Jordan Roy-Byrne – Follow Through Strength In Gold To Close March Would Drive The Rest Of The PM Sector
Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to share his technical and macro outlook for gold, silver, and the PM mining stocks now that we’ve seen a bump in precious metals sector on the back of the recent banking concerns continuing to roil markets. One of the key takeaways Jordan has noted is that gold is getting very close to making new highs versus foreign currencies and is gaining traction versus the S&P 500 and general equities. Those 2 factors usually have preceded a rise in US dollar terms and a breakout to new highs there as well. The other key technical factor to consider is $1950 area of monthly resistance as we close up March and also the quarter. A meaningful close above that level would be a positive technical factor for the whole sector.
Next, we followed up on last week’s conversation where he had pointed out the risks are still present, if the recessionary pressures were to intensify and if general equities corrected down, for silver and the PM mining stocks to go back and retest their lows from last year. While that is still a potential concern to consider over the next few months, Jordan is more constructive that a move higher in gold would eventually drag silver and the mining stocks higher in tandem. We wrap up by discussing how mining stocks may respond in both the environment of a medium-term pullback in a recessionary route, or in a break out move by gold above $2100.
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Some real opportunities out their regarding the banks when everyone over reacts. Purchased some bank preferred bonds for 82 cents on the dollar with a callable date of June 31 of this year. The interest rate is approximately 5.2% giving one a potential return of 20% over 3 months. After the 3 months is up, the rate becomes variable and will probably yield about 7.5% depending on the fed funds rate. The stock market looks lousy with the possibility that it wants to challenge the lows of last year. The PMs are attempting to break out but the stocks are yawning.