Gold & Gold Miners - Still Looking For Bottoms
All the signs showed that gold and gold miners will fall further in the coming days or weeks
First, the US Dollars
US Dollar – 90.92.
After broke down from its 92.00 support, the US dollar stopped down further in the 90.50 level and traded in a very narrow range last week: 90.50 – 91.25. It also showed a bullish sign as its RSI finally moved and stayed above its oversold territory.
My view: We may see a US dollar’s run in the coming 1-2 weeks. Strong resistance is in the 92.00 area. That will not be good news for the gold near-term trend.
Gold – 1,843.60. The gold bounced back strong while the US dollar broke down, ran from1,766.00 to 1,878.87, its 50 days MA, then pulled back to 1,843.60. The trend is still down.
My View: Gold will eventually drop to 1,700-1,730 levels in the coming weeks. It may bounce back to re-visit its 50 days MA then turns down as it is short-term oversold or maybe not.
Gold Near term target: 1,700 - 1,730.
SPDR Gold Trust ETF (GLD) – 172.49. The bottom will be seen in the 161 levels.
VanEck Vectors Gold Miners ETF (GDX) – 35.08. The bottom may be seen in 31-32. My previous prediction was 32-34. GDX's recent low was 33.25. Short it whenever it showed strength.
I have published 4 articles so far in SeekingAlpha on the gold this year, with 1 to our members and 3 are free publications:
1). January 8: “Gold - Long-Term Target: $2,000”. The gold started its big run in 2020 from 1,500.
2). April 20: “Gold And Gold Miners - Gold $2,000, My Next Target, But Not This Year” The run continues and spiked to 2,085 high before pulled back.
Kinco News and FX168.com reported this work.
3). September 21: “Gold And Gold Miners: The 2020 Year Run Is Over” I believed that the gold will close at below $2,000 by year-end.
4). November 10: “Gold And Gold Miners: Don't Fall Into A Bull Trap”
The chart below showed how the gold performed after each of my publications:
Of course, past performance can never be used to indicate future results. Invest with caution as always.
Analyst's Disclosure: I am/we are short GDX.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.