Gold as represented by the SPDR Gold shares (GLD) and gold stocks as represented by the Philadelphia Gold and Silver Stock Index (XAU) have declined –1.48% and –5.42%, respectively.
Gold and gold stocks are getting decimated in the latest decline. Our Gold Stock Indicator (GSI) is getting very interesting. Below are the GSI for the Philadelphia Gold and Silver Index (XAU) compared to the Barron’s Gold Mining Index (BGMI).
Posted in Barron's Gold Mining Index, BGMI, gold, gold bugs, Gold Stock Indicator, XAU
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Gold and precious metal stocks continue their long road to nowhere with a minor increase of +1.32% in the SPDR Gold Share (GLD) during the last week.
Gold and gold stock continued to climb higher in the last week. The gold ETF (GLD) rose +2.90% in the last five days while the gold stock index (XAU) rose +6%.
The Gold Stock Indicator for the same period shows the critical levels that need to be exceeded on the upside.
Posted in Barron's Gold Mining Index, gold, gold bugs, Gold Stock Indicator, XAU
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In our very first attempt at understanding Edson Gould’s Speed Resistance Lines, when the Philadelphia Gold and Silver Stock Index (XAU) was within 6 trading days of the top (found here), we said the following:
“Based on the most recent high of 228.95 the downside target for the XAU index is 76.32. We recommend that whenever the XAU index falls at or below the speed resistance line drawn on the chart, between now and just before 2028, as part of the secular rising trend in interest rates/inflation, we would expect that the stocks in the index are underpriced. Confirmation of fair values should be determined for possible speculative positions at these times.”
An updated chart of the Philadelphia Gold and Silver Stock Index with Speed Resistance Lines is below:
Posted in Edson Gould, speed resistance line, SRL, William X. Scheinman, XAU
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In our very first attempt at understanding Edson Gould’s Speed Resistance Lines, when the Philadelphia Gold and Silver Stock Index (XAU) was within 6 trading days of the top (found here), we said the following: Continue reading
This is the list of gold related equities that we track within 10% of the one year low. We strongly recommend that you do your own research on these companies and assume that the downside risk is half of the current price, at minimum.
We’ve come to the time when we need to determine the upside targets for gold stocks. There are a few assumption that we’re making in this assessment. First, we believe that our Gold Stock Indicator is right about the direction of gold stocks, in general. Second, we’re assuming that from the current levels there is more downside risk. Third, we have excluded fundamental analysis (government printing, future earnings capacity, gold as money, etc.) from our assessment of the upside potential for individual gold stocks.
Posted in Edson Gould, gold, gold bugs, Gold Stock Indicator, HUI, Performance Review, speed resistance line, SRL, upside target, XAU
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