- I can see clearly now the rain is gone I can see all obstacles in my way Gone are the dark clouds that had me blind It's gonna be a bright, bright sun shiny day
- Johnny Nash
Gold is Golden😍
Back in July the daily gold chart had a three black crows formation. This is a dark cloud. Very negative for price. At the time we were going to do a piece on the precious metal. We stated why we did not. We wanted to wait to view the weekly and monthly chart. Gold did retreat for a few sessions, but buyers appeared to buy the dip. Resistance and support formed around $3250. By the way, we do not like to toot our horn because if we are wrong on recommendations, we feel pain. However, all our Fibonacci calls on the metals have hit their target. Yea!
That was yesterday. Today, gold broke-out higher and it hit a new record. It's buddy, silver also broke-out and sits above $42 last Friday. The two precious metals had strong volume. This is very nice. We stated last January that two factors and indicators needed to be met. One is King Dollar. It had to fall. It did. The other was the GDX. We actually mentioned it in January 2024. We stated that it needed to pierce $35. It did, but failed to hold price. So, we repeated the two.
The GDX sat at $35 in January and it rose to challenge the high of 2024. It not only beached it, it broke-out. It has been non-stop on an up channel line. It closed last Friday at $69.75. There's more. The two gold indexes, the XAU and HUI are like Elton John singing, "Harmony."
💪XAU and HUI
The two look alike in their channel line. The XAU was $140 in January and closed at $272 on Friday. The HUI was $277 in January and closed ar $559 on Friday. WOW!
There's More
Bank of America sees more investment in gold. They feel that gold will average over $4000 in the second half of 2026.
"Everybody's Talking About Rate Cuts Now..."
We expect a quarter point rate cut later today. We feel there will be a pullback in the metals after the cut. We also told you that we expect a market pullback too. If this happens, it would be your opportunity to buy gold or load up the truck. The three mining stocks that we like all are trending higher. Newmont (NEM) could retreat to $67, but after that, we see $91. Barrick (B) could fall to $24, but after that, we see $34. Alamos (AGI) could slip to $28, but after that, we see $37. Yay!
Other Factors
There are many, but we will conscentrate like a blond reading the orange juice container. Peter Krauth reminds us that the poor man's gold is facing a double squeeze. Silver has been in a supply shortage for years. The demand is being met with recycled silver. This is limited. The other demand on silver comes from its industrial use. Solar needs silver. Peter says the push for AI data centers is extremely high. The problem is these centers are being built in dry, open areas. The electric grids in these areas cannot cover domestic needs and this new business need. The firms are building their own solar farms to get power. Another reason for this choice is zoning permits are easier to get with solar. The demand for silver could push the poor man to millionaire status at over $100 per ounce. Double Yea!! Peace.
