Good Morning!

Gold, Silver and the mining stocks are correcting.

Did you think Gold could run from $2000 to $3000 without more than a 6% correction? Well, it made it to $2800.

Let's take a look at history and look at how Gold performed in the months after it broke to new all-time highs and ran higher.....

Corrections After ATH's in the 1970s

The chart below shows Gold in the 1970s, including the two breakouts to new all-time highs.

Gold eclipsed its 1968 peak at the start of 1972 and shot higher until the summer. Then it corrected 14%, which ended with a test of its 200-day moving average. There was no retest of the breakout.

Later that decade, Gold recovered from its nasty bear market and eclipsed its 1974 peak at the end of 1978. Then, Gold quickly corrected 21%, retested the breakout, and bottomed at its 200-day moving average.

2009 Breakout

In the autumn of 2009, Gold broke $1000/oz. It surpassed $1200/oz before correcting 14%, down to its 150-day moving average.  

Gold All-Time High Breakout Analog

The chart below plots the performance of the three breakouts to new all-time highs on the scale of the current breakout. 

Both averages (one for all three and the other for the weaker two of the three) show that after a correction, Gold could recover early next year and then gain momentum in the spring. 

Gold's Performance After The First Correction

Two of the three corrections bottomed at the 200-day moving average while the other bottomed at the 150-day moving average.

Two of the three corrections corrected 14%.

Gold may only need to correct 11% to test the 200-day moving average, if it consolidates for several weeks.

After those 3 corrections, Gold then advanced:

200% in 15 months (1973-1974)

400% in 14 months (1980 peak)

51% in 15 months (2010-2011)

Following the weakest of the three would take Gold to nearly $3800/oz by the end of Q1 2026.

In TheDailyGold Premium...

TDG #908 included, among other things, updated company notes on some of the companies in our Top 10 Table.

Here is part of the update summary:

Gold closed last week at $2695. I see strong weekly support at $2520 to $2555, which would be a 9%-10% correction. Silver closed at $31.45. I see the strongest support around $29.50. There is also support at $30.00 and $29.00 (a retest of 2020-2021 resistance).

The miners (GDX, GDXJ, SILJ) put in a good bounce at the end of the week and the daily candles are encouraging. But I need to see .......On Wednesday, 46% of GDXJ stocks closed above the..... Lows this year have occurred at....or lower.

I am scouring the junior universe to find future Top 10 Companies and other companies that are undervalued with 5x to 10x potential. 

Thank you for reading.

I wish you all the best in 2024 and beyond.