Gold, Silver, Miners and Dollar – Daily Update
Gold is down nearly 4.9% from its recent high—and over 3.4% since our July 23 call, which once again gave our followers the edge. In this quick update, we break down the evolving candlestick story across gold, silver, GDX miners, and GDXJ juniors. We’ll also take a quick look at the Dollar Index to uncover any common threads tying these markets together. At the very least, it’s a revealing and educational ride through some of the most critical technical setups unfolding right now.
CANDLES
Things are turning ugly. After forming a Three Black Crows pattern on the daily, gold now printed the same on the 2D frame. The weekly is shaping up bearish—and the monthly? It’s already a Bearish Engulfing. If the bulls continue to ignore the growing threat, tomorrow could be quite the event.
Silver is catching up with gold. The 1-3-day frames confirmed reversal. The monthly is in danger if it closes below the June low, as we discussed in the last Weekly Digest. The bearish pressure is building.
If you watched the Commodities Digest over the weekend, you’ll remember our warning about the technical vulnerabilities in the monthly candles for GDX and GDXJ. That weakness has only deepened—both are now on track to close with Bearish Engulfing patterns on the monthly chart, practically locking in a red August… and possibly more pain beyond.
Just two days ago, we talked about DXY breaking above the 50 DMA. Now it’s powering through the 100-day and even the 100-month moving averages. At this pace, the Greenback is highly likely to close both the 15D and monthly frames tomorrow with Bullish Engulfing candles. You know what usually follows that, right? Buckle up.
And if you’re heavily positioned in precious metals or miners… you might want to buckle up too—just be prepared for the ride to go the other way.
Happy Trading!
