Price Levels of Interest for Gold, Silver, & The Miners
The lackluster price action in gold, silver, and the mining stocks over the last year was enough to lull even the most loyal gold bug to sleep.
However, in mid February of this year, prices started to move higher from support and finally took out some important levels.
The $1,900 area in gold was finally taken out in February and prices ran all the way back to the 2020 high near $2,100.
However, this rally was short-lived as price quickly came back in to test the breakout area at $1,890/$1,900.
I will remain bullish on gold as long as it continues to trade above $1,900.
Silver managed to rally from long-time support near $22 and finally got through the 200-day moving average and $25 resistance. But like gold, it quickly came back in for a test of $24.50 where it was met with buyers.
So far the trend is intact as long as silver can hold above $24.
What about the miners?
Gold and silver mining stocks have been outperforming gold and silver since late January and they continue to show very positive price action.
The gold miners/GDX have been trending higher since finding a bottom at $29.
After breaking through trendline resistance price made a run at the May highs but quickly came back in to test support at $36.
If price can't hold $36 the line in the sand would be $34 in order to keep the current trend alive.
The Junior silver miners/SILJ made a strong move through trendline resistance at $13 and have managed to close above that level as well as the 200-day moving average.
Above $13 SILJ continues to look good but any move back below the trendline could spell trouble for bulls.
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Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.