THE MARKET SAYS RISK OFF BUT I CONTINUE UPBEAT ABOUT GOLD!

Because I was in Vancouver at the Metals Investor Forum last week, I had to do Week in Review for my subscribers as of Thursday evening. So I thought what I said then might change dramatically by the close of the week. At that time, it looked pretty much like a “risk off” week as both the T-Bond and gold rose while the S&P was basically flat. On Thursday, gold rose by 0.7% to $1,471.12. The mainstream media blamed gold’s rise on concerns about the imminence of a trade deal between the United States and China. A slip in riskier assets and the U.S. currency were also given as reasons for gold’s price rise.  As of now, today gold is at $1,467 and S&P is slightly down, but too early to tell how the week will end.

Michael Oliver on Gold Shares (GDX)

Given my travel schedule, I was unable to do write much last week, aside from what I wrote for my newsletter subscribers. But I continue to be very excited about the prospects of the junior resource sector as we head into 2020. The chart on your left shows the beauty of Michael Oliver’s momentum and structure analysis as it pertains to the major gold miners. Investors who try to trade off of the 50-day moving average have been whipsawed in and out of the market.  But Michael’s momentum chart shows why he has not triggered investors in and out. A mere 0.20 move above the zero line suggests senior gold shares should soon make their next move higher.

Buying the notion that we are in the early days of a precious metals bull market, I especially like silver. In Vancouver I met up with two silver plays that I think are absolutely fabulous exploration stories. I expect to bring at least one of them to my subscribers in this week’s letter.