Good Morning!

The precious metals sector has started to correct more.

Gold has come back to $3300 after it rallied to all-time high resistance.

Silver reached $37 but quickly fell back to the $35s.

The miners and juniors, which were max overbought according to my breadth indicators (as noted in our premium updates), have succumbed to selling.

Let's look at what is next for Gold.

The Very Big Picture in Gold

First, we need to understand the big picture and the very big picture.

The very big picture is Gold is in a new secular bull market as it made its biggest breakout in 50 years and its second biggest breakout in its history.

From a historical view, Gold is at the start of a parabolic move.

It will move massively higher over the coming years but that will entail significant volatility along the way.

After huge gains in 1971 and 1972, Gold endured a 30% decline and a 21% decline, before its dramatic 45% bear market in 1975-1976.

Gold Comparable Corrections

Recall our update last week and comparison of the three major breakouts in Gold.

Aside from the two noted above, there is also the 2005 breakout, although it emerged from a bottom and not a bullish consolidation leading to new highs. 

Here we highlight potential comparable corrections in 1972 and 2005. These corrections followed the initial post-breakout peak. 

The price damage is different but the length of the corrections is quite similar. 

Gold Daily Chart

Here we plot Gold's daily candle chart (top) and Gold against the Stock Market (bottom).

We sketch how the correction could develop from here.

Mind you, this is rough guess that is subject to change. 

The 150-day moving average will reach $3150 in early August and the 200-day moving average will reach $3200 in September.

Gold should remain range bound from $3150 to $3450 through July and August.

Gold is too weak against the S&P 500 at present, as it hangs below the 50-day moving average. But there is very strong long-term support at 0.51. 

Sponsor Companies

GoGold Resources (GGD.to, GLGDF) is currently a small Silver producer with a pipeline of two development projects. Its CEO Brad Langille owns a large position in the company and has a very strong track record.

The company is attractively priced and in position to produce 9M oz Silver-equivalent/year in a few years, with another development project that could take it to 16-17M oz Silver-equivalent.

The stock has now doubled since we called it a buy on December 22, 2024. It is emerging from a complex bottoming pattern, which projects an upside target of C$2.60.

For more analysis of this company and many more companies, subscribe to TheDailyGold Premium.

Silver Quarterly Close

Watch Silver's close next Monday. That's the end of the quarter.

If Silver can close above $35.00, it will mark the second highest quarterly close ever. 

In TheDailyGold Premium....

In TDG #940, a 15-page update, we covered the prospects for the correction in the sector. 

We noted the short-term peaks in the stocks we own and follow.

We also covered three different silver companies (p8-p10).

Two of these companies have potential to be future overall Top 10 Companies. 

And these aren't the typical companies you see covered in newsletters.

In TDG #939, we included a new Top10 Silver Companies Table, in addition to tables, notes and commentary on 19 different companies. 

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Thank you for reading.

I wish you all the best in 2025 and beyond.