Jordan Roy-Byrne – Gold Is On The Cusp Of A New Secular Bull Market That Will Move The Whole PM Sector Higher

Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to review why the technical and fundamental picture is setting up to have gold poised on the cusp of breaking out into a new secular bull market, that will lift up the entire precious metals sector to higher levels.  All eyes will be fixed on where gold closes this month and quarter this coming Friday.  A close above $1953 in March would be the highest quarterly close on record, and a close above $1986 would be the highest monthly close.  Gold is presently within range of those resistance levels, so they are very much on the table for how things finish this week. Ultimately though, it is likely going to take breakout in gold to all-time highs above $2100 to really get some momentum going in PM mining stocks and silver.

 

From a macro sense, Gold has been continuing to outperform general equities and continues to make higher levels against foreign currencies.  Also, to further validate that Gold is setting up in a new bull market, when Gold corrected in February and early March it was only about 8% over that time period, and then quickly recovered those losses and blasted back higher once again for the balance of March. This is in alignment with what one would expect to see in bull market corrections.

 

Jordan feels that whether this breakout move higher in gold to new all-time highs happens in a few weeks or a few months, he feels it is coming and that it will lift the GDX and GDXJ to new highs once it then starts to really gain traction on the way to $3000 in the longer term.    In addition, a breakout to new highs in gold will also drag silver prices higher along with it, but ultimately, it is when silver can break through the $26-$28 resistance zone that it can then break decisively back up north of $30 and beyond. 

 

Click here to visit Jordan’s site – The Daily Gold.