Wealth Creation Through Natural Resources
Next week the Federal Reserve is set to make its final monetary policy announcement of the year and 100% of economists surveyed by Bloomberg predict that the Fed will raise rates. While 100% demonstrates a high level of conviction among this … Continued
While the gold miners (GDX) continue to experience significant day to day volatility the ratio chart of GDX relative to the S&P 500 (SPY) shows a clean double-bottom pattern with a notable bullish momentum divergence: GDX/SPY (Daily) The October/November … Continued
Today’s 2%+ rally in gold comes after the latest Commitments of Traders Report (December 1st) from the CFTC shows that commercials have almost covered their entire short position in gold futures: This is unprecedented given that commercials are … Continued
With the CRB Index plumbing new lows on a daily basis managed money such as CTAs and hedge funds are betting on more downside by moving to a virtually unprecedented net short position across the commodities futures complex: CRB … Continued
The gold miners as represented by GDX have tested the ~$13 support level more than a half dozen times since July and thus far this support level has held every time: GDX (Daily) Forget seasonality, forget extreme CoT positioning, forget that … Continued
Gold futures speculators have moved into full capitulation mode in recent weeks. The liquidation we have seen in gold since the October highs is one for the record books; a more than 135,000 contract reduction in net long exposure for … Continued
Gold is well on its way down to an important area of potential support around $1,000/oz; there is a great deal of confluence and price memory in the upper $900s/lower $1000s: Gold (Monthly) Throw in potentially extreme CoT positioning … Continued
During the week ending November 17th large futures speculators (hedge funds, CTAs, etc.) piled on short positions in precious metals futures at one of the fastest paces on record: Between both gold & silver futures large speculators … Continued
Precious metals have had an awful month of November thus far with both silver and gold suffering significant declines while posting record losing streaks. Most notably silver has posted a record 14 consecutive losing sessions and is currently working on … Continued
Gold producers’ cash costs are still well below the current price of gold with the 90th percentile of costs coming in just above $800/ounce: Notice how the gold price tracked the 90th percentile of cash costs very closely for … Continued