Gold: The Rainy Season Is Coming

Exact weather is hard to predict, even with forecasts, but we can look for clouds on the horizon to prepare ahead of time.

During the dry season, people near the equator feel like the sun is getting closer each day, making the heat unbearable at some point. The weather needs to periodically correct itself, allowing for some torrential downpours – this way life can survive. The same happens on the market; we can’t try to reach the sun by rallying incessantly. Patience is key. One thing is certain – a major storm front is moving closer, taking into account how the PMs behave.

Gold just moved higher once again, but mining stocks refused to follow. This is one of the most reliable indications that a top is being formed.

Before moving to the precious metals sector, let’s take a look at the USD Index.

When I described the above chart yesterday (May 25), I wrote that the USD Index had been trading at about 89.6. Since this is the level at which the USD Index closed the day (approximately), practically everything that I wrote about its chart remains up-to-date:

1 2 3 4 5
View single page >> |

Disclaimer: All essays, research and information found on the Website represent the analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Almoni33 2 weeks ago Member's comment

don't you think spike can reach $1952 spot price before sellers wake up?Frankly speaking I am loaded with long term longs and I am fine with any scenarios. a rise of 2100 or a fall of 1480

oddly enough

Almoni33 2 weeks ago Member's comment

I read your articles with interest, especially the graphs are good. I would like to ask you what price of gold would make you capitulate in the forecast?this is important and should be stated every time as clearly as you stated the drop targets. Sorry for the platitudes. Best wishes