by Jordan Roy-Byrne, CMT
The Daily Gold
Gold has broken out from a two-month-long consolidation (from $1680 to $1770), but the other precious metals markets have not confirmed Gold’s strength.
The gold stocks (GDX, GDXJ) remain below their May highs while Silver remains below significant, multi-year resistance around $18.75. Silver closed Monday at $18.06.
Furthermore, Gold, when priced against foreign currencies, has not broken out. This move has been driven mostly by dollar weakness.
It is possible other markets could follow Gold higher, but there is work to be done.
Moreover, the breakouts in GDXJ and Silver would be far more significant for the sector.