Precious metals no longer deserve the benefit of the doubt.
They no longer represent an opportunity cost, either.
No, gold and crew carry downside risk – nothing else!
What changed since last week?
Gold futures undercut a critical level of interest…
That’s the former commodity supercycle peak marked by the 2011 high.
Check out the monthly candlestick chart of gold futures:
The impressive resilience that’s defined gold and precious metals for most of this year has given way to overwhelming weakness.
Sellers have cracked the 1,923 level and any bullish conviction for these shiny rocks.
We can’t own gold, gold mining stocks, or precious metals more broadly – at least not now.
Gold and silver triggered sell signals last week. I’ve highlighted critical areas of former and potential support.
Those levels stand. Review the chartbook below and today’s Gold Rush video for updates.
It’s not all doom and gloom for the gold bugs, though. In fact, gold is likely carving out a multi-year base with a bullish bias:
Nevertheless, if that proves to be the case, gold bugs have their work cut out for them, which is typical of an environment where rates and the dollar continue to rise.
No matter how we turn the charts or what precious metal asset we review, overhead supply remains intact as areas of underlying demand give way to selling pressure.
You simply can’t own these rocks or their associated stocks as long as that happens.
