Metals and Miners formed significant lows in December and prices should rally sharply in 2018. The dollar is breaking support and likely started a new bear market. Commodities, in general, should be embarking on a multi-year advance.
Gold is at resistance. Closing the week above $1,300 would be very productive. Failure to break above $1,300 tomorrow or Monday could lead to a brief pullback. Prices should find support around the 10-day EMA going forward.
Miners are taking a breather. Prices are trading sideways, and it is unclear if they will provide a meaningful pullback. The pause will end when gold successfully defeats the $1,300 level.
I’ll consider adding to USLV and JNUG if prices pullback to the 10-day EMA. Otherwise, I’m content holding my current positions.
US DOLLAR- The dollar continues to fade, and prices broke the November low. If prices continue to sink, gold should break above the $1,300 level.
GOLD- Prices continue to rise out of the 6-Month low, and we are embarking on a multi-month rally. There is firm resistance around $1,300, and the bears will try to keep that level. However, the weakening dollar should drive gold through $1,300. Once above $1,310, the next level of resistance arrives around $1,350.
SILVER- Prices closed above the intermediate trendline and are approaching the 200-day MA. We may see a little pushback around the $17.00 level. Nevertheless, the underlying trend is healthy, and a multi-month rally has started.
GDX- Miners are taking a breather as gold approaches the $1,300 level. The consolidation/pullback will end when gold breaks above $1,300, and we will get another run higher.
GDXJ-Juniors paused and are allowing the 10-day EMA to catch up. We should see another upleg when gold breaks above $1,300.
JNUG- Bought JNUG at $15.87. Prices may not pullback very much here. If they do, I’ll look to add a little more between the 10-day and 50-day EMA’s.
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