Gold has not only been shining in absolute terms but is also dramatically outperforming the broader commodity complex.
While energy chops around in a multi-year range and cattle carve out a distribution pattern, the glittering ore refuses to quit printing new all-time highs.
New all-time highs and fresh breakouts are dotting the charts. Buy signals are flashing left and right. And even the laggards – Palladium and Platinum – are refusing to break down.
Best of all, Gold has a one-track mind: up and to the right!
Gold’s failed breakout is testing investor resolve.
But let’s consider last week’s action before unearthing our bullion.
Check out the failed breakout with a bearish momentum divergence in the lower pane:
Waning momentum and failed breakouts go hand in hand. Gold futures proved an excellent example of momentum diverging from price, one of the reasons we track RSI readings.
But just because momentum confirmed the failed breakout doesn’t mean we should turn bearish gold and precious metals.
Remember, gold posted a new all-time high last week. New all-time highs are bullish in my book, no matter how you slice them.
Plus, the March breakout remains valid, and the underlying uptrend is intact:
It doesn’t matter whether we’re talking about markets or summer vacations – I always avoid the crowds and aim to beat the heat.
No lines. No traffic. No fake, overpriced food.
It also means dropping those hot semiconductor names and reaching for silver mining stocks…
July is by far the best month of the year for gold’s crazy cousin. And it’s not even close:
Unsurprisingly, silver futures gained roughly seven percent last week. They also eclipsed the previous month's high and printed their highest weekly close since January 2013 – a stellar way to start the month.
On the flip side, June takes the cake as Silver’s most challenging month of the year.
And what did Silver do last month?
It only fell by three percent, finding support at a critical shelf of former highs:
Silver is underperforming Gold. The corrections in Platinum and Palladium are burrowing deeper beneath our breakout levels. And the Gold Miners ETF $GDX is printing fresh lows versus the broader market.
