Here are the links from the past week....

 

Video: Gold Stocks Correcting
Recorded Thursday evening. My latest take on the miners. 


Podcast: Joe Mazumdar Shares Latest Insights on Junior Miners
This interview took place Friday outside at the Precious Metals Summit. We will have more episodes coming in the days ahead.  
 

Fund Managers Current Asset Allocation
Always great information in this monthly post from the Fat Pitch Blog. 


September Macro Update: Consumption Growing at 3% & Housing Sales a 9-Year High
Great info here and lots of it. The economy is growing but slowly. 


Federal Budget Outlook Deteriorates
Expect the budget deficit to get worse in the years ahead.


Gold Stocks in a Sweet Spot
So Says...Goldman Sachs? Is that good or bad??? 







Premium Snippets 


Chart 1: TDG Junior Gold Index in US$

Juniors were down fractionally for the week. They gained to start the week but by the end of the week had lost all the gains. As we see below, the index could fall 10% to important support and 14.5% if it fills the open gap from June.

The index closed at 856. I'm a holder right now and a buyer at 775 and 725. 







Chart 2: Gold against Foreign Currencies

The chart below is a weekly candle chart of Gold against the US$ index basket and at the bottom Gold against EM currencies.

The short-term outlook favors lower prices. Gold/FC could fall a bit more and test support while Gold/EM could also fall more and test support. 



 


We just returned home from the Precious Metals Summit in Beaver Creek, Colorado. Thus, our next update has not been sent yet but we will share a few thoughts.

In our view the near-term bias is down and we see more downside coming before a potential low. We noted GDX 22 in the video. With respect to Gold, we could see a move to as low as $1260 or $1280ish. Gold is weak right now against foreign currencies and the US$ index is rising. That puts a lot of pressure on Gold in the short-term. Also, when one looks at the weekly and monthly charts for the miners and the metals, it is clear we are in a multi-month correction/consolidation. After all, Gold, our junior index and ZJG.to (the CAD GDXJ) all peaked 2.5 months ago.

At present, a rate hike is not fully priced in and when it is should mark at least a temporary low. Inflation ticked higher and the sector sold off on Friday as it gives the Fed more leeway to hike. But remember that if inflation rises faster than rates, precious metals rise. I suspect that could happen in 2017 but in the meantime the market is focused on higher rates and that is short-term negative for the sector.

Corrections in bulls are buying opportunities and opportunities to reshuffle the portfolio. Consider dumping losers if you have any and taking partial profits is not a bad idea (selling bits and pieces) if you have some massive gains. Then put the cash into the best opportunities. It is going to be a very busy autumn for us. If you are a serious investor who believes in the secular bull market in precious metals, then consider joining our service. 

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-Jordan

Disclaimer: Sponsor Companies are paid sponsor companies of TheDailyGold.com website and this free newsletter. Do not construe sponsorship with a recommendation. The author of this newsletter is not a registered investment advisor. 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.