Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« $174,000 per Ounce Gold Not Funny–Scary – Jim Sinclair & Bill Holter | Main | Krugman Skeptical About Crypto, Predicts Collapse »
Monday
Aug202018

Gold Mining Stocks Still In Weak Hands (Part Two)

Preamble

The Gold Bugs Index, the HUI closed at 138.98 recently as after umpteen tests of 180 level it finally failed, and the precious metal stocks went into freefall. Since the HUI peaked in 2011 at 630 it has fallen 77.93% (630-139) and this last month we witnessed a form of capitulation in this tiny sector of the market.

The underlying commodities of gold and silver have also fallen from grace having penetrated their upward trendlines via a vicious downswing in dramatic fashion.

As we wrote recently we need to reassess the recent movements with the view to deciding whether this is a buying opportunity, a time to hold or a time to ditch our stocks and run for cover.

There are many reasons for this capitulation in the precious metals sector that need to be considered, however, for today we will focus on what we believe is the main reason for the battering that sector is going through; the US Dollar

A Quick Look at The Charts of the HUI, Gold and the USD

The following charts of the US Dollar and gold show us that the inverse relationship between the gold and the dollar is alive and well.

First the chart of gold where we can see that golds upward trendline has been tested and failed in no uncertain manner. The technical indicators are firmly in the oversold zone with the RSI standing at 22.55 suggesting that a bounce is on the cards, however gold needs a spark, an ignition, some sort of catalyst in order to reverse its fortunes.

 

Next is the chart of the US Dollar where we can see that it has made good progress since May and has challenged the resistance level of 95 a number of times before finally making a breakthrough to trade close to the 97 level.

more....

 

If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

If you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that our verification email has not gone astray and you are getting our emails.

 


 

Winners of the GoldDrivers Stock Picking Competition 2007 

 

 

 Follow us on TWITTER @goldprices

 

 


PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>