The Daily Gold, Released on 10/5/22 (Recorded on 10/4/22)

Precious Metals have enjoyed a very strong rally since early last week. Previously when Gold broke $1675, we noted the non-confirmations of the breakdown. These included Silver not breaking down and Gold not breaking down in real terms. There are quite a few positives for the stocks. The GDX advance decline line is showing its third most significant positive divergence of the last 7 years. The other two were at the 2016 and 2020 bottoms. Meanwhile, GDX (as well as GDXJ) is 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.

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.

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