It's the weekly Gold Rush!

This week Strazza and I highlight critical levels to keep on your radar in the coming days and weeks. 

Check it out...

From the Desk of Ian Culley @IanCulley

The dollar is back and on the move.

After falling for four straight months, the US dollar index $DXY is up three days in a row. Whether the near-term dollar strength turns into a more sustained trend is anyone’s guess.

Regardless, risk assets feel the pressure as many areas begin to correct, including precious metals. 

Despite this recent selling pressure, we have clear levels to trade against when it comes to Silver and mining stocks.

It's the weekly Gold Rush!

While Gold futures digest overhead supply, strength broadens across the metals space.

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From the Desk of Ian Culley @IanCulley

Plenty of gold bugs have Krugerrands buried in their backyard or basement –  if not secured in a safety deposit box at their local bank.

It’s no wonder gold falls under the “end-of-the-world” category of assets.

Regardless, gold prices can also rise with risk assets.

I raise this point not only as an important reminder but because it’s pivotal to understanding our bullish thesis for precious metals.

It’s a metals story….

It's the weekly Gold Rush!

The intermarket landscape provides favorable conditions for precious metals as the US dollar experiences an unabated decline.

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From the Desk of Ian Culley @IanCulley

Gold is running into supply.

Whether the former 2011 highs still hold any psychological significance doesn’t matter.

Gold bulls continue to find an overwhelming amount of sellers at that level. This will remain the case until demand absorbs supply.

How long will that take? It’s anyone’s guess – maybe weeks, perhaps even months or quarters.

The point is, gold needs time.

Meanwhile, silver futures are coiling within a tight range…

Check out the daily chart of gold’s crazy cousin:

It's the weekly Gold Rush!

As gold futures approach a significant area of overhead supply, we cover the most important charts in the space.

Check it out...

From the Desk of Ian Culley @IanCulley

The NYSE might be closed today, but futures markets are open.

And while the volume remains low during US trading hours, it hasn’t stopped Gold futures from revisiting a critical level.

Gold currently challenges a price level engrained in goldbugs’ minds worldwide…

The prior commodity supercycle peak!

Check out the chart of Gold futures:

Yesterday we talked about how early the Phlx Gold & Silver Index was in this cycle.

This index of 30 precious metal mining companies was the first of the Gold related stock indexes to break out. This was about a month after Gold Futures confirmed a buy signal for us in early October.

But of the "stock" related indexes, we look to the Phlx Gold & Silver Index as a leader. It certainly acts like one.

And do you know how I know it's not a downtrend?

Look at its components. Each column represents a different moving average ranging from the 5-day all the way to the 250-day. The further to the right the column sits, the longer the smoothing mechanism we used.

Green cells represent when the price of the stocks are above that particular moving average, and each of the 30 stocks are listed on the left side of the table:

In the 4th quarter we saw the Phlx Gold & Silver Index ($XAU) break out above its key level, invalidating any bearish thesis that one could possibly have for Precious Metals.

You see all that resistance in the $XAU in 2013 and 2016, right around $110-113?

Well once we got back above that in November, it was time to start buying Gold & Silver stocks.

But where was the most popular ETF $GDX?

It was still below that overhead supply, as you can see in this chart below.

Until now...

On Tuesday of this week I was in the city for a few meetings, so I dropped by Fox Business to chat with my old pal Liz Claman.

Her and I have been doing this dance together for over a decade.

She's one of the best in the business and we always have a great time.

Liz knows me well by now so there's no gossiping about the Fed with me.

It was all about explaining how we're already entering Month #8 of this ongoing Bull Market for stocks.