Just a note about Monday’s publishing schedule. It’s stock market holiday (Washington’s Birthday) in the U.S., and we’re generally not posting analyses on such days. The trading is usually very limited and there’s little action, anyway. This means that the next week’s flagship Gold & Silver Trading Alert is going to be posted on Tuesday, Feb. 16, and there will be no regular Gold & Silver Trading Alert on Monday. If anything major happens, I’m going to send you a quick intraday Alert (just like this message), anyway.
Still, I don’t want to keep you waiting until Tuesday go read this week’s summary, so here’s a very quick recap of what happened and what’s likely to happen next.
In tune with what I wrote recently about this technique, gold appears to have reversed very close to its triangle-vertex-based reversal point. Moreover, thanks to the most recent move higher, it verified the breakdown below its rising medium-term support line (which just served as resistance). Conversely, the USD Index verified the breakout above its declining medium-term resistance line. This means that the bullish case for the USD Index and the bearish case for gold were confirmed.
Miners (GDX) moved lower after forming a broad top right below their 50-day moving average. Just like gold, miners declined without waiting for USD’s visible rally. That’s all bearish for the precious metals sector.
The cherry on the bearish cake comes from silver, which just (on Friday) outperformed silver on a very short-term basis. Gold futures were down by 0.2%, but silver moved higher by 1.04%. That’s exactly what tends to happen shortly before bigger moves lower. Now, this is not as important as silver’s outperformance that we had seen about 2 weeks ago, but it serves as yet another confirmation of the bearish case.
All in all, the outlook for the following weeks (most likely the next few months) remains bearish for the precious metals sector.
As always, we’ll keep you - our subscribers - informed.
Thank you.
Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief
