MasterMetals: #Gold - Reaching near old time highs yesterday, but #MiningStocks were down 1.9%. $GDX had a reversal yesterday, which may signal a short-term top. $GLD $SLV $SIL $GDXJ $JNUG

July 24, 2020

#Gold - Reaching near old time highs yesterday, but #MiningStocks were down 1.9%. $GDX had a reversal yesterday, which may signal a short-term top. $GLD $SLV $SIL $GDXJ $JNUG

Attachment 1 displays the 30-minutes gold spot price. The price reached intraday yesterday a high of US$ 1'898 per ounce. Since the beginning of this week, gold didn't get attacked by the Usual Suspects

The gold spot price has tested the all-time high London gold p.m. fixing of 2011 (US$ 1'895)(attachment 2). Technically this is a very important limit and most likely the gold price will consolidate but will try again to go over this technical target. The all-time high intraday was 1'917.90 per ounce in 2011.

Many so called gold Gurus always talk about US$ 2'000 per ounce as a resistance, but this is only a psychological barrier. Technically this round figure is meaningless.

Although spot gold was up yesterday, gold stocks were down 1.9%. GDX (VanEck Vectors Gold Miners ETF), the largest gold mining shares ETF, had a reversal yesterday, which usually signals it has reached a short-term top.

Generally speaking gold remains in an uptrend. It might pause for a while but the chances are excellent for higher gold prices in the weeks to come.

The silver spot 30-minutes chart (attachment 4) shows silver reached a high of US$ 23.24 per ounce this week. But more important, it was able to break on the upside a 5-year consolidation pattern with a strong resistance point of US$ 21 per ounce. That level will now become the support level (attachment 5).

The largest silver miner ETF (Global X Silver Miners ETF), symbol SIL (US$ 45.50) had no steam left yesterday, despite firmer silver prices, and lost 2.7%. As in gold it signals a short-term consolidation period to come. However, the breakout in silver prices at US$ 21 is very strong and silver has definitely entered into a bull market, something gold achieved already in June 2019 when it broke out on the upside at US$ 1'380 per ounce.