Gold Prices: A Spark of Life

For a few hours this week, it looked like gold prices might wake up, despite this Gold Enthusiast’s best reckoning.  You see, for a few months the technicals have been saying “the gold sector is asleep” pretty loudly, though not loudly enough to wake it up.  

Despite good earnings by most gold stocks in January, investor interest stayed with risky equities and Bitcoin right up until, well, both of those fell off a cliff. But the drop wasn’t far enough to drive investors away, just enough to make them pause, apparently.  Because Tesla’s (TLSA) recovered fifty bucks, and even Bitcoin showed signs of a pulse this week.

Gold prices briefly popped above 1360 during New York trading on Wednesday, bringing in some volume and even catching some headlines.

(credit Fidelity)

But it didn’t last long.  China made conciliatory noises about tariffs, and Trump didn’t say anything stupid for almost eight hours straight.  That calmed markets enough to let investor’s chill-pills take hold, and gold predictably settled right back down to where it was before.  And it looks like it’s staying there today.

So until the next geopolitical disturbance takes hold (or if silver really is in dire straights right now), gold enthusiasts everywhere can go back to sleep.  Set your alerts for 23.00 GDX and wait for earnings reports, I guess.  Rolling over and going back to sleep now.

Signed, The Gold Enthusiast

DISCLAIMER: The author has no position in any security mentioned.  The author is long NUGT and JNUG, and may trade these positions over the next 48 hours.

 Related: Will This Bubble Crash the Market? 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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