Are We There Yet???????

One of these days, I will post a definitive yes to the question, "Are we there yet?"

Another week and the DOWNTREND in the HUI index of gold mining stocks remains intact BUT . . . .

well yes this is some good news for the BULLS.

A downtrend is defined as a series of LOWER LOWS and LOWER HIGHS. Once that trend is fully broken then we can look for the formation of an UPTREND.

So this past week the HUI posted a HIGHER LOW! Which is the first half of the puzzle to break the DOWNTREND. The Second half is for the BULLS to rally and sustain that rally above the previous HIGH of 211.89 posted on October 4, 2022.

No we are not there yet but there is hope. The Federal Reserve meets next week and if there is any hint of a pause in raising interest rates that might be the catalyst to raise the gold mining stocks and end the DOWNTREND.

On the other hand if the FED raises rates and declares that the war on inflation must continue unabated then the miners are likely to continue the DOWNTREND.

Gold bounced off of support last week but seems to be in a holding pattern trading rather flat.

The DOWNTREND in gold remain intact.

Silver is range bound between $18 and $21 per ounce on the COMEX. A range that has contained silver since July of this year.

source: JM Bullion

The premiums on American Silver Eagles remains outrageously HIGH almost a 100% mark up over the COMEX price for an ounce of silver.

So there you have it.

We are not there yet for gold and the mining shares. COMEX silver remains within a well defined trading range, while the premiums on physical silver are off the charts.

Make of all of this what you may, however with the FED meeting next week, caution is warranted.

Peace Out and Stack On!