Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us with his technical outlook on the recent corrective action in the precious metals sector, while still in the context of a longer-term secular bull market. On the daily and weekly charts, after a solid move higher in Q1, both gold and GDX failed to breakout above key resistance areas and got overbought, showing they needed to bullishly consolidate these recent moves before the next leg higher.
We look forward into how the precious metals markets will respond to future Fed policy, where the central bank eventually switches from hiking rates to reversing course and then cutting rates. Next we transition over into how longer-term both gold and the precious metals miners will resume their uptrends after a few months of consolidation, completing the handles on the 2 bullish cup & handle patterns. The discussion wraps up with Jordan making the point that eventually the general equities will capitulate and start correcting, and that this is impetus behind the precious metals sector diverging and making much higher highs.