Weekend Gold Forecast - Sunday, Jan. 3

SILVER

Silver appears to be leading gold, and prices are hovering just below the intermediate breakout line. Progressive closes above $27.00 would confirm a breakout. This advance’s minimum target is $35.00 with $42.00+ possible if we get an extended run. 

PLATINUM

Platinum is leading silver, and closing above $1100 would support a breakout. If confirmed, a run to $1200 could happen quickly, followed by $1500. Both silver and platinum are well below their all-time highs and have some catching up to do.

GDX

Senior gold miners remain weak relative to gold and silver. I think money may be coming out of large-cap names and moving into the more leveraged smaller companies/sectors. Prices would have to close below the short-term (dashed) trendline to recommend a breakdown. Otherwise, I think they will start to trend higher once gold confirms a breakout above $1912.

GDXJ

Juniors (GDXJ) are closer to a breakout than GDX, in my opinion. Closing above $57.00 would establish a new cycle advance. Until that happens, more consolidation is possible.

XLE

If the economy is beginning to weaken, as I suspect, then we should see a pullback in energy prices. I remain bullish on oil over the next decade, but prices could consolidate into Q1 2021 as the economy stagnates.

SPY

Stock market gains have slowed significantly after the November elections and vaccine news. As I’ve said before, the good news seems to be baked in. I think we will see a correction in January. How severe? I’m not sure. Closing below 350 would open the door to 320. However, it would take a breakdown below 295 to support a double-dip recession. 

Note- If the S&P 500 continues to rally throughout January, we could be entering a bubble phase in the stock market.

 

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