The Korelin Economics Report, Released on 5/24/23

Jordan Roy-Byrne, Founder and Editor of The Daily Gold, reviews some of the technical support levels he is watching for in gold, silver, and the precious metal mining stocks, as the sector continues to correct. Now that the $1980 support gave way in gold, he is looking to the 150 day moving average, as well as the 20 month and 40 month moving averages as key support levels in gold. As mentioned last week, the picture in silver and in the GDX are a bit more concerning, but he notes that the 200 day moving average in both is now sloping upwards, and thus could offer a good support level to watch on both charts.

With regards to the longer-term bullish setup in the precious metals, it really comes down to getting past the noise of the debt ceiling debate, and the Fed pause rhetoric, to see how quickly the macro data erodes further pointing to a contracting economy and recession in a few months. This will provide the catalyst for the Fed to take action and start cutting rates, which will be a positive factor for gold, silver, and the PM mining stocks. The other factor to watch is whether the general US equities suck in a bunch of new buying to markets higher, which could pressure the PMs, or whether they continue to erode allowing gold and the mining stocks to further diverge.

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.