After peaking in August, gold began a multi-month correction into a 6-month low. The bottom appears in, and gold could be starting a new multi-month advance. If silver and miners confirm, we think gold could reach $2300 by January 2021.
-GOLD DAILY- Gold closed above the intermediate trendline as well its October high ($1939.40) on Thursday. This development supports a divergent low in late October at $1859.20 and a new multi-month advance.
Note- A divergent low occurs when one asset reaches its cycle targets while other, like assets, do not. In this case, both mining ETFs (GDX and GDXJ) made lower lows in October, meeting our minimum targets, but the metals (gold, silver, platinum, etc.) did not – thus creating a divergence.
-SILVER- Silver rallied strongly on Thursday but needs to close above $26.00 to establish a breakout. -GDX- Miners made new lows in October and reached our minimum […]
November 7, 2020 (updated November 7, 2020) Published by StockMan