The Korelin Economics Report, Released on 10/5/22
Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to discuss his technical outlook on gold, silver, and the precious metals mining stocks, and whether we’ve recently seen a significant turn in direction. Precious Metals have enjoyed a very strong rally since early last week, where we saw a false breakdown in gold below key support at $1675, down to $1622 that was swiftly reversed back up over $100 to $1730. We had previous noted the non-confirmations of the breakdown in Silver not breaking down and Gold not breaking down in real terms relative to US general equities. There are also quite a few positives for the PM stocks, in that the GDX advance decline line is showing its third most significant positive divergence of the last 7 years, and both GDX and GDXJ are showing positive divergences against the S&P 500, as well as in terms of new 52-week lows. Specifically, GDXJ has made fewer and fewer new 52-week lows even as the index made lower lows last summer. We also discuss, when looking at silver’s recent outperformance of gold, there is still a small potential that we could be seeing the early stages of a non-confirmation bottom in gold. We wrap up with getting Jordan’s technical outlook on both the US dollar and on interest rates yields, as those markets appear to be the tail that is wagging the dog as it relates to most markets.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.