GOLD FUTURES DAILY: The mid-term gold cycle bottomed on day 37, and prices are just 5-days into a new upswing. With futures clearly above $1800, the uptrends in metals in mines should begin to accelerate.
Note- The 40-day cycle in gold bottomed on day 37 – slightly early but not surprising given the previous cycle extended to 41-days. On average, we see cyclical turning points about every 39-days.
GOLD MINERS (GDX): After an agonizing 7-month decline, gold miners formed a major bottom in March. In fact, we believe GDX may never return to the $30.00 level again for the remainder of this 10-year bull market.
Currently, miners are attacking the April high ($36.83) and the all-important 200-day MA ($36.99). Once prices push above $37.00, then I think there is a good chance shorts will begin to cover, and we could get the 5%+ bullish recognition day I’ve been expecting. Prices overwhelmingly confirmed last week’s 40-day cycle low, and we are only 4-days into a new upcycle.
A bullish recognition day is when the market suddenly acknowledges a trend change. Traders that were still looking lower get caught on the wrong side and frantically begin to cover. In GDX, this usually looks like a robust 5%+ up day on big volume.
We see tremendous value in high-quality gold producers. These miners are minting money (real money – not Dogecoin) and are incredibly undervalued, in our opinion. Our favorite producer currently is Kirkland Lake.
Silver and platinum are also primed and could explode higher over the coming weeks. Our Premium Metals Portfolio has been accumulating quality miners throughout the pullback and is well-positioned for this next advance.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit here.
For a look at all of today’s economic events, check out our economic calendar.