TheDailyGold: Gold & Silver Breakdown. What's Next?...

Published: Wed, 10/04/23

 
The Daily Gold
Jordan Roy-Byrne, CMT, MFTA
 
 

WEEKLY NEWSLETTER

Wednesday, October 4, 2023
 
 
 

Good Morning!
I had been sick and it took me a while to recover. Therefore it has been a month since my last email to you.


Let me start with the macro fundamentals and a chart below....


Long-term bond yields have broken out to new highs, which, among other things (such as rising real interest rates) is fueling US$ strength and weakness in the stock market and Gold.

The yield curve (difference between 10-year and 2-year yields) has steepened in recent days to an 11-month high at -0.34. If it surges above 0, it indicates a recession is coming.






A recession is exactly what precious metals need and precious metals should begin to perform better in "real" terms as the curve steepens to 0 and higher.

The major catalyst for Gold could be when the rise in long-term bond yields breaks something in the markets and the economy. That would result in a move down in bond yields and the Fed needing to cut rates.


Gold and gold stocks may be at the start of a relief rally. Breadth indicators on gold stocks are at real extremes.

Anyway, here are my thoughts on the monthly & quarterly charts for Gold & Silver, & potential target prices. 

Click Here for the Video
 
 
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On Monday, the company reported a drill intercept of 11.64 g/t Au over 108.3 meters. The company's previous best hole was 3.39 g/t Au over 108.2 meters, which is 341 gram-meters. The latest hole was 1,260 gram meters. This hole could be a game changer for the project.
 


 
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In TDG #843 on August 12, we wrote in the summary:

I hate to say it but the technicals look ugly for precious metals. We have already seen it in the juniors but now the metals are at risk. Sentiment in some ways is terrible but there’s still some speculators in Gold & Silver that could dump.

Since then, Gold declined $100/oz and GDXJ by 12%. 


More recently, in TDG #849 on September 24th we wrote in the summary:
 

The price action in the miners and juniors is weak and breadth indicators are not yet at oversold extremes. For GDXJ the percentages are in the low 20s. I want to see at 10% or lower to have confidence in a rebound.

The entire sector has sold off hard since then, with GDXJ down roughly 10%. 

 


Consider subscribing as we can keep you ahead of sector trends and inform you as to the companies with the potential to be big winners during the coming bull market. 
 
 


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Thanks for reading. I wish you all great health and prosperity in 2023 and beyond.
 

-Jordan
 

Disclaimer: This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.  
 
 

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