Gold, Silver, Uranium And Their Miners (Part 1) – Commodity Piece
All The Key Details You Need To Know
It’s time for a big Commodities update. This article will be split in 2 parts in order to ensure proper coverage of Gold, Silver, Uranium, Gold Miners, Silver Miners, Uranium Miners, and individual Uranium names as well. We’ll also be covering Soybean Meal to address the special request from one of our Paid Members. Let’s dive in!
Gold
Following a multi-week run, Gold has just put in a bearish RSI divergence on the weekly timeframe. Currently, Gold is hanging by a thread on the weekly timeframe before confirming a bigger pullback. The MACD is on the verge of a decision point in this week or the next and the 9-weekly EMA has been holding as support until now. A weekly close below the 9-weekly EMA with a bearish MACD cross would set the stage for a pullback to $2270 support or even 21-weekly EMA around $2240. But make sure to not try to front run this potential pullback, it’s important to wait for confirmation – says the daily chart.
While the daily chart has 2 drives of bearish RSI divergence leading up to the recent mini-pullback, the picture for a deeper pullback is still not confirmed. During the recent mini-pullback, Gold has formed a hidden bullish RSI divergence (lower higher on RSI and higher on price). If this confirms, then a deeper pullback might have to wait a little longer. Therefore, waiting for confirmation is important here.
However, remember to not miss the bigger picture on Gold here. In the 24 months following the last Fed rate hike, Gold tends to perform really well. We’re only 11 months in, with July 2023 being the last rate hike. This means that the next 13 months is still very favorable for Gold from a historical standpoint.
Silver
Silver, on the other hand, has been showing stronger signs than Gold. It doesn’t have any divergences or worrying signs on the weekly timeframe. The 9-weekly EMA is at $29, but Silver is still more than $1 above it (unlike Gold that is at its 9-weekly EMA).
However, this doesn’t mean that a short-term healthy pullback isn’t possible for Silver when looking at the daily chart. Currently resting at the 21-daily EMA around $30, Silver momentum (MACD) has crossed bearish. If Silver is unable to hold the 21-daily EMA during this MACD reset then a pullback to the 55-EMA at $28.2 is what we’re eyeing. This type of a pullback should be enough to reset the MACD in a healthy fashion and also provide buyers a chance to step-in for the next leg up. Such a pullback is also in line with our Cycles Forecast that we’ll provide in the Paid Section.
Silver/Gold Ratio
In our last Gold and Silver related Commodities article (found here) we had presented our Paid Members with this write up:
In the following weeks, Silver lived up to our words and has ended up outperforming Gold by 14% already. While a pullback in this ratio (Gold outperforming Silver) is possible, we believe it is likely to be short-lived. Our bias for the coming weeks/months is still for Silver to outperform Gold by at least another 14-15%.
Uranium
While Uranium’s beautiful parabola in the works still remains intact, some more short-term consolidation/pullback cannot be ruled out. A bearish weekly MACD rejection with a loss of the 9 and 21-weekly EMAs puts the $26.12 support level and the 55-weekly EMA around $25.45 into play. A deeper pullback could see $24 support level being tested, but this is not our base case right now.
The daily chart shows the same picture and levels of interest as the weekly chart, which helps provide further confluence.
In the next (Paid) section of the article we’re going to cover our Cycles Forecast for Gold and Silver. We’re also going to take a look at Gold Miners, Silver Miners, and Junior Silver Minors. As a bonus, we’ll be providing the Paid Members with the yearly Cycles Forecast for Gold Miners ($GDX). Lastly, we’ll cover Soybean Meal as a special request from one of our Paid Members. But that’s not all!
In the Follow Up Part 2 Piece of this article, we’re going to take a look at Uranium Miners and Junior Uranium Miners. Moreover, we’ll be covering 4 individual Uranium stocks that are either at attractive levels or nearing attractive levels. We hope Part 1 and Part 2 of this Commodity Piece helps provide a detailed overview for Gold, Silver, and Uranium markets and helps all our members Make Money!