Jordan Roy-Byrne, Founder and Editor of The Daily Gold, joins us to share his technical and macro outlook for the precious metals sector, with a key technical factor to watch being what price gold closes this month and quarter.  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 next week.

We’ve seen a solid move higher in the precious metals sector off the recent corrective lows a few weeks ago, on the back of the recent banking concerns continuing to roil markets.  Taking a step back for review, this brief and shallow pullback in the PMs during February and early March, after having run significantly higher for months leading up to that, is in alignment with what one would expect in the early stages of a new bull market.  Gold only corrected about 8% over that time period, and has now, once again, quickly recovered those losses and has been heading higher once again in mid- March.

Jordan noted that aside from the reaction we see for the balance of the week and month from the Fed’s hike, and potential comments from Jerome Powell, that he is also keeping a close on how economic data reports come in as well as the trends in the interest rates yield curve, because the catalyst for a change in course from the Fed will be evidence that the we are nearing a recessionary route, and that would likely trigger a move in gold to really break out above $2100.  This breakout in the metals is what is really what is needed to expand the margins for gold mining stocks and the rationale behind them catching up and then outperforming.

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