A Rosy Picture for Gold Miners?

04/01/2019 5:00 am EST

Focus: COMMODITIES

Mary Anne & Pamela Aden

Co-Editors, The Aden Forecast

Gold bottomed in 2013, it’s now in a renewed 6 month rise and it’s not so far away from its record highs. And with its leading indicator rising from the lows, it’s painting a rosy picture for gold, asserts Mary Anne and Pamela Aden, editors of The Aden Forecast.

Countries and investors around the world are moving into gold and into this arena. And more countries  are adding to the list that are repatriating their gold. That is, they’re bringing their gold home. Germany was the leader in this move.

Then Netherlands and Austria followed. Hungry did the same last  October. Romania is now seemingly right behind, not to mention other countries. It’s an ever growing trend in this skeptical world.

Since first breaking above a key level at $500, gold never looked back. This was an important level at the time for many reasons. Then when gold broke above its financial crisis peak in 2009, at $1000, gold again never looked back.

That was in spite of the multi-year bear market since 2012. That is, gold is still above $1000. While it’s not that exciting in today’s  world, it’s a key level, and it’s un- likely to be tested. 

The next key step would now be for gold to break above the top resistance of the last 5 years... the $1380 level. This would be the most impressive move in the ongoing three year old bull market.

The market would then be flexing its muscles and looking towards the record high levels of 2011 near $1900. And our gold timing indicator is telling us some good news!

On the downside, if gold declines below the 23 month moving average at $1275, it may not last long below it.  A decline to test its key uptrend support near $1230 is possible, but unlikely.

On the upside, each time gold nears the key resistance at $1380, the closer it gets to a breakout. And when that happens you’ll want to be onboard! Keep an eye on $1320 and  $1275. A break either way will determine the next  move.

Gold shares often lead the way for the metals. It’s happened many times in the past and it looks like it’s happening again. We believe these markets have a lot further to go on the upside. And we believe this is a good time to be buying.

The shares we like best are Agnico Eagle (AEM), Royal Gold (RGLD) and Gold Miners ETF (GDX). And while some of the others may be lagging, they’ll catch up.  So continue to hold the positions you have and buy new positions in these stronger ones.

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