A golden setup

This is a post on gold, silver and the PM miners.

It’s a sector that’s notorious for failed moves and heart break. In fact, I started this blog in December with a bullish gold post. We got a brief one month rally before a failed breakout in SGDJ (junior gold miners ETF).

I’ve largely avoided this sector all year, but things are looking great again.

Last year’s peak

First, I want to note that the gold peak in Aug last year happened at a very logical place. Here are monthly charts for GDXJ, SIL, and SILJ:

The current setup

Just like the gold rally stalled last year at major resistance, the recent correction could stabilize here at major support. Here are monthly charts for Silver, XAU, GDX, and SGDJ.

Closing comments

While the charts above look promising, the PM sector still has the weakest momentum of the entire market. ***So tread with caution here.***

Another real asset to consider is farmland, and it’s in a strong uptrend. I posted about it a few days ago here: Link.

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Important Disclaimer: This blog is for educational purposes only. I am not a financial advisor and nothing I post is investment advice. The securities I discuss are considered highly risky so do your own due diligence.