Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to share the support levels he is watching for in gold, silver, and the precious metal mining stocks, as the sector continues to correct. In particular, he is looking at the near-term support levels of $1980 and $1950, and then after that the 100 day and 150 day moving averages as key technical levels in gold. The picture in silver and in the GDX are a bit more concerning, as their rollover lower the last few weeks has foreshadowed the move lower in gold, and signaled that we may see a little longer and further down to go in this corrective move in the near to medium-term.
Stepping back to the larger the longer-term setup, the PM sector is still looking constructive to break out to higher levels later in the year. We discuss how this will depend on how quickly the macro data erodes further pointing to a contracting economy and recession in a few months, which would provide the catalyst for the Fed to take action and start cutting rates. With a lull in many of the key economic drivers in the near term, there isn’t much to move the needle, barring the potential of the debt ceiling debate, until we get to the next Fed meeting in June. We discuss that bond yields rising along with the US dollar recently, has also further pressured the precious metals sector. Wrapping up, Jordan shares the kinds of PM stocks he is interested in accumulating for the longer-term bull market.
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