The battle between Trump and the Democrats over further stimulus is causing erratic and volatile swings in gold. Last week's convincing rebound was a head-fake, and miners should accelerate lower into late October.
GDX DAILY CAHRT
The drawn-out stimulus negotiations of last week triggered a second 3 to 5-day rebound in the form of an ABC correction. The rebound should end any day, and we expect a secondary decline in late October. Overall, we still expect a cycle target surrounding $34.50. It would take a robust breakout above the black trendline (currently $42.00) to trigger an immediate buy signal.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, visit here.
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AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle that will begin to unravel in 2020.
