Everyone agrees this is a crisis. Gold still falling

The UN Secretary General is warning of a global food emergency. German Chancellor Says US Has “No Strategy.”

Russia’s president pledged to do “everything” to serve Iran’s interests. The leader of Hezbollah called the peace talks a “grave sin.” America rejected Iran’s proposal. Iran rejected America’s demands. Qatar is warning of a “frozen conflict”. A US destroyer intercepted an Iranian tanker today.

And yet – gold is down. silver and Mining stocks have declined even further.

This tells us something – that the precious metals sector “wants” to fall – perhaps significantly – before coming back up.

The decline in gold price intensified and it reached its 38.2% Fibonacci retracement. Even if it causes a rebound, it is unlikely to be significant.

Why?

Because the rally that caused the USD index to fall by more than 2% was very short.

At the time of writing these words the USDX is up just 0.21%.

If such a small rise in USD managed to trigger such a big fall in gold (about 10x bigger), so how far can gold fall when the USD index finally climbs in a meaningful way?

Really far away.

Meanwhile, mining stocks continue to fall – right on track with my hopes And for the benefit of my customers.

GDXJ has fallen more than 4% so far today, and if the pace of this decline will be similar to the pace of the decline in March, it looks like the decline is about to accelerate.

It is possible that we will see GDXJ close to the March low in 2-5 trading days.

Copper is also down today, and although it has not yet declined, it is clear that it has once again invalidated its move above 61.8%. fibonacci retracement And above some of this year’s highs.

This is bearish, especially when FCX ​​– one of the leading copper stocks – is already trending lower.

FCX recently released a terrible earnings report, but its weakness extends far beyond the initial reaction. In other words, it looks like it is set to drop further in the coming weeks.

And all of this continues to support the case for a decline in precious metals and mining stock prices over the next months and – potentially – weeks.

Thanks for reading today’s article – the free version of today’s Gold Trading Alert (with analysis in progress). Subscribers receive full analysis with charts, technical levels and trading conditions daily. Gold trading alerts are available directly and through the Diamond package.

Thank you.

sincerely,

Przemyslaw K. Radomski, CFA