Macro Drivers & Junior Stocks Fundamentals

Gold, Ingots, Treasure, Bullion, Gold Bars, Wealth

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Reviewing both the technical pricing support and resistance levels, as well as the macroeconomic and fundamental drivers for the precious metals sector. We start off noting that gold and the general equity markets have been moving inversely to the 10-year bond yields, with the upward move in interest rates pressuring the markets, and then noting the recent reversal and bounce in markets and PMs over the last 2 weeks.

I note the interesting technical setup in the Silver chart, with respect to how pricing is acting around the 400 day moving average. I point out that if it can clear the $26-$27 resistance area, it sets a longer-term targeted move up to $35, and we debate if that would be a short-covering rally or more of a momentum trade. Additionally, I outline the trends in silver versus foreign currencies as being fairly constructive.

Wrapping up, we pivot over to the gold mining stocks, and look at the ETFs GDX and GDXJ, on both a technical pricing setup, but also in relation to general equities using Intermarket analysis. When looking across the range of precious metals stocks, I highlight why my interests are more skewed to positioning in the producers, but point out that there are still good values to be found in the quality pre-revenue developers and explorers after such a deep correction.

Video Length: 00:21:11

More By This Author:

Silver Approaching Resistance. What’s Next?
3 Precious Metals Charts With 43-Year Bases
Gold, Stocks, Bonds, Dollar = All Related

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