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Lift-Off Time for Gold Stocks

On Wednesday gold and silver selling exhausted at 640.00 and 12.00. There are a number of bells ringing this morning (AM Thursday), that tell us it’s ‘safe to get back in the water’.

Charts courtesy

Featured is the daily gold chart. The circles draw our attention to the fact that the last two dips in the price of gold were not confirmed by the three supporting indicators. This is bullish.
The overall uptrend channel was never really violated (red and green dashed lines).

Featured is the GDX electronic gold unit. The upside reversal (green arrow) that ended trading on Wednesday is bullish, coming as it did right near the 8 month old support zone. All three of the supporting indicators (blue dashed lines) also remained positive during the past month.

Featured is the index that compares the XAU mining index to the gold price. Generally speaking, when this index is rising, it is a bullish signal for gold and gold stocks. The index has been in ‘uptrend’ since March. Wednesday’s ‘outside reversal’ (green arrow), is another bullish sign, another ‘bell being rung’! The three supporting indicators are positive.

Featured is a long-term chart that compares gold to oil. The 19 year mid-point is 15 barrels of oil pays for one ounce of gold. Today it only takes 9.35 barrels. GOLD IS A BARGAIN COMPARED TO OIL! (And the trend is up!)

Gold bells are ringing again. Its time to cover shorts and go long. The COT report due out Friday is expected to be very bullish.
Silver is suffering from ‘chart damage’ that occurred on Wednesday, but silver will be pulled along by strength in gold.
Oil is supported by the massing of sea power in the Persian Gulf (currently three carrier forces, with a fourth on the way).

Please do your own diligence. I am NOT responsible for your trading decisions.

Happy First and Fourth of July!
Peter Degraaf

Peter Degraaf is an on-line stock trader with over 50 years of investing experience. He sends out a weekly Email alert to his subscribers. For a 60 day free trial contact his at ITISWELL@COGECO.CA

By | 2017-03-23T14:06:42+00:00 July 1st, 2007|Gold & Silver Commentary|

About the Author:

Jason is the founder of He previously worked in data analytics for the world's largest research firm, consulting to Fortune 500 companies globally. Jason eventually leveraged those skills to trade successfully full-time and after helping friends and family optimize their investments, he launched Gold Stock Bull and The GSB Contrarian Report newsletter. Jason is a cycles investor with a contrarian eye for identifying undervalued assets. He has built an expertise in both the precious metals and cryptocurrency markets. Jason believes in honest money, limited government, decentralization of power and enjoys studying alternative economic models.