The GLD ETF reversed, but that’s normal because the ETF’s price is directly tied to gold’s performance. However, it wasn’t clear that both: silver and gold stocks would cause similar reversals – and they did.
Oh, and platinum and palladium also made weekly reversals.
Given all this, should you really expect gold to rise in the coming months? I don’t think so. Maybe gold itself doesn’t think so either, since last month was the first month in a long time in which gold fell. And in December the time has also come.
Should gold, silver or mining stocks fall immediately? Absolutely not. (And even if they do, there are ways to do it make money with gold while just holding it.)
This is FOMC week and the interest rate decision has to be made on Wednesday, and the same goes for the press conference. Before then, markets can move erratically. The Fed is widely expected to cut rates, so if that happens we could see an immediate rise followed by a buy-the-rumor-sell-the-fact decline. Or maybe we’ll see some volatility after the decision. But the most important thing remains intact: the medium-term indications point to lower prices in the following weeks.
Mining stocks will likely fall as well, but the detailed (and just updated) downside targets/profit-taking levels for GDX and GDXJ are things I’ll reserve for myself. subscribers.