#Gold: Excellent day as it pushes through US$ 1'210/oz. Can it close above $1200 for the week? $GLD $XAU $HUI

Gold now has the real possibility to stage a significant rally, which could last through year-end.

For some time we have noted that gold needs to break through US$ 1'210/oz. to get something going on the upside. 

 

Yesterday, Gold was finally able to close over US$ 1'210 (Attachment 1, Gold 30-minutes chart). We are very encouraged as the Usual Suspects that show up clobbering any hint of a rally, were not in the market. 

Let's wait another day or so to see if gold can hold its gains. Attachment 2, Gold Daily chart, shows the push through the resistance line. 

In terms of the Big Picture, it's Closing Prices were interested in, not the Intraday moves which are just noise. 

 

Attachment 1

Attachment 2

As is usual on the upside, Gold Shares have been outperforming in a big way.

$HUI, the ARCA Gold Bugs Index (Attachment 3) gained +7.4% and broke the 50-day Moving Average on the upside.

 

Attachment 3

Below are the stocks in the $XAU and their respective performance yesterday.

 

	XAU -Derived from Market data
As of Oct 12, 2018  Company Symbol Latest Price Prev Close Change Time High Low Volume 52 Weeks Net % High Low Agnico Eagle Mines Ltd NYSE:AEM  37.37 USD 34.69 +2.68 +7.73% 11Oct18 37.74 35.36 801418 49.79 32.19 Anglogold Ashanti Ltd NYSE:AU  9.68 USD 8.82 +0.86 +9.75% 11Oct18 9.75 9.05 1746585 12.00 7.08 Barrick Gold Corp NYSE:ABX  12.58 USD 11.50 +1.08 +9.39% 11Oct18 12.75 11.72 12055513 16.83 9.53 Coeur Mining Inc NYSE:CDE 5.50 USD 5.19 +0.31 +5.97% 11Oct18 5.54 5.17 849310 9.22 5.05 Compania de Minas Buenaventura NYSE:BVN 14.00 USD 13.07 +0.93 +7.12% 11Oct18 14.11 13.21 626110 16.79 11.69 Eldorado Gold Corp  NYSE:EGO 0.95 USD 0.90 +0.05 +5.56% 11Oct18 0.95 0.90 1527867 2.29 0.80 First Majestic Silver Corp NYSE:AG 6.22 USD 5.72 +0.50 +8.74% 11Oct18 6.28 5.70 1226630 8.48 4.93 Freeport-McMoran Inc NYSE:FCX  13.23 USD 12.77 +0.46 +3.60% 11Oct18 13.36 12.68 5957437 20.24 12.20 Gold Fields Ltd NYSE:GFI 2.79 USD 2.63 +0.16 +6.08% 11Oct18 2.82 2.61 2396169 4.51 2.21 Gold Resource Corp NYSE MKT:GORO 5.52 USD 5.17 +0.35 +6.77% 10Oct18 5.64 5.19 58028 7.33 3.57 Goldcorp Inc NYSE:GG  10.80 USD 10.11 +0.69 +6.83% 11Oct18 10.93 10.19 4657882 15.55 9.76 Harmony Gold Mining Co Ltd NYSE:HMY 2.04 USD 1.76 +0.28 +15.91% 11Oct18 2.04 1.87 2745514 2.53 1.43 Hecla Mining Co NYSE:HL  2.96 USD 2.79 +0.17 +6.09% 11Oct18 2.98 2.77 1563261 5.32 2.59 Iamgold Corp NYSE:IAG 3.95 USD 3.74 +0.21 +5.62% 11Oct18 3.99 3.76 1413384 6.52 3.57 Kinross Gold Corp NYSE:KGC  2.96 USD 2.83 +0.13 +4.59% 11Oct18 3.01 2.87 6990202 4.77 2.68 McEwen Mining NYSE:MUX 2.18 USD 2.07 +0.11 +5.31% 11Oct18 2.20 2.06 874279 2.55 1.82 New Gold Inc NYSE MKT:NGD 0.82 USD 0.78 +0.05 +5.99% 10Oct18 0.83 0.78 575822 3.90 0.75 Newmont Mining Corp NYSE:NEM  32.72 USD 30.56 +2.16 +7.07% 11Oct18 32.89 30.91 2927425 42.04 29.17 NovaGold Resources Inc NYSE MKT:NG 4.20 USD 3.91 +0.29 +7.42% 10Oct18 4.20 3.92 153325 5.04 3.35 Pan American Silver Corp NASDAQGS:PAAS 15.49 USD 14.67 +0.82 +5.59% 11Oct18 15.58 14.62 2990648 18.75 13.97 Randgold Resources Ltd NASDAQGS:GOLD 78.16 USD 71.34 +6.82 +9.56% 11Oct18 78.96 73.05 2512695 104.05 59.90 Royal Gold Inc NASDAQGS:RGLD 79.06 USD 74.70 +4.36 +5.84% 11Oct18 79.76 75.25 906702 98.53 71.91 Sandstorm Gold Ltd NYSE MKT:SAND 4.09 USD 3.84 +0.25 +6.51% 10Oct18 4.09 3.83 128048 5.63 3.52 Seabridge Gold NYSE:SA 14.03 USD 12.99 +1.04 +8.01% 11Oct18 14.46 13.13 223879 13.75 9.80 Silver Standard Resources Inc NASDAQGS:SSRI 17.97 USD 17.26 +0.71 +4.11% 11Oct18 18.14 17.22 1107846 22.86 15.18 Stillwater Mining NYSE:SWC 13.23 USD 12.77 +0.46 +3.60% 11Oct18 13.36 12.68 5957437 20.24 12.20 Wheaton Precious Metals Corp NYSE:WPM 17.97 USD 17.26 +0.71 +4.11% 11Oct18 18.14 17.22 1107846 22.86 15.18 Yamana Gold Inc NYSE:AUY 2.71 USD 2.52 +0.19 +7.54% 11Oct18 2.75 2.55 3918840 3.80 2.30

 

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#Gold Is Cheap. Barron's Cover

"#Gold offers enormous portfolio utility in today's complex and treacherous investment environment."

How cheap is gold today?

Barron's Cover

Gold Is Cheap. Inflation Is Coming. You Do the Math

The Fed may have to relent, in part because the upward pressure on rates is squeezing developing economies that have dollar-denominated bonds or other obligations. If the markets sense that the Fed is about to hold off, the dollar could drop and gold would probably rally. His view is that "gold offers enormous portfolio utility in today's complex and treacherous investment environment."

How cheap is gold today?

One way to measure it against stocks is a comparison with the Dow Jones Industrial Average. It effectively takes 22 ounces of gold to buy one unit of the Dow, which finished on Friday at a record 26,743. The most recent low in that relationship occurred in 2011, when the Dow/gold ratio dropped to 7.8. Then, gold was near its all-time high of $1,900 an ounce.

The century-old peak of 40 occurred in 1999, when gold traded at about $290 an ounce and the Dow stood around 11,500. The low came at the top of the commodity boom in 1980, when the metal and the Dow were at parity around 800 after a decade-long stretch when the Dow moved little. Commodities overall are historically cheap versus stocks.

See the whole article on Barron's:

https://www.barrons.com/articles/gold-is-cheap-inflation-is-coming-you-do-the-math-1537582480?mod=djem_b_Weekly%20Feed%20for%20Barrons%20Magazine