E Thursday Precious Metals Report

As gold approached $1350, I felt an accelerated surge higher was possible – if we got the right trigger. Yesterday’s FOMC minutes held that potential. However, instead of thrusting gold higher, prices stalled and slipped back below $1330 by today’s close.

The gaps higher in miners also setup the potential for a hastened upswing with the correct ingredients. In that scenario, I wanted to see GDX close above $24.00 by today. It didn’t happen, and that’s when I decided to raise my stops in NUGT & USLV and position myself in DUST for a possible breakdown.

US DOLLAR- The 20 and 50-period moving averages are crossing over bullishly at 96.09; that is now essential support. Closing below that level would be near-term bearish. Whereas, closing above 96.60 would support an interim pivot low.

GOLD - April gold slipped below the $1330 level, and prices formed a swing high. Progressive closes below the 10-day EMA would support a top. The negatively diverging MACD needed a sudden surge higher to restore the cycles momentum. I felt the best chance for that was after yesterday’s FOMC minutes or perhaps today’s leading economic indicators. Prices finished decisively lower instead and downside follow-through tomorrow would support a top.

SILVER - Prices formed a swing high and closed below the 10-day EMA. Closing below $15.70 tomorrow would support a top.

MINERS 5-MINUTE CHART- One of the main reasons I placed stops on NUGT & USLV today was because of the 5-minute chart of NUGT below. It looked like a descending triangle was forming and a breakdown was likely. For that reason, I placed the afternoon stops and took a position in DUST.

GDX- Prices formed a small swing high, but overall senior miners held up reasonably well. Closing below Tuesday’s gap ($22.43) would signal an exhaustion gap sell. To remain immediately bullish, I wanted to see significant upside follow-through yesterday or today – we didn’t get it.

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Disclosure: None.

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