Aris Mining Corp (ARMN)

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Gold And Gold Miners - Gold Price's Run Will Start This Week

May 15, 2017

Summary

After three weekly drops in a row, gold prices will start their next round of running this week.

Gold miners once again served as an early indicator as to where gold prices will go next.

A review of my recent calls on the direction of gold and gold miners.

Gold Prices Dropped Three Weeks in A Row. But They Bottomed Last Week And Will Have A Run From This Week

Gold prices closed at 1,227.70 last Friday, up 0.28% for the day but still down 0.15% for the week. On weekly basis, gold has been down three weeks in a row. On the other hand, gold gained two days in a row after being down for the first three days last week. Last week's low was 1,214.30.

My view is that last week’s low will be the so-called “deeper correction” bottom and that gold will start its run from this week.

There are several reasons I made such a bullish call:

Gold touched the bottom of its recent uptrend trend line then bounced back last week. See its daily chart below:



2. Gold and gold miners are all falling into my downside target zones.

In my article “Gold & Gold Miners - A Small Pullback Or A Deeper Correction?”, published on April 23, I said:

gold price may face a deeper correction in coming weeks
In order for it to be defined as a deeper correction, as I noted in my article, the drop in gold has to be more than $50 from its recent high.

As gold's recent high is $1,296, it was my view that gold would drop to below $1,246 during the pullback.

I did not give the exact pullback target in that article but gave my expectations later on in the article’s comments section.

Gold will drop to 1,200 – 1,210 or SPDR Gold Trust ETF (GLD) 115 level.
VanEck Vectors Gold Miners ETF (GDX) may see bottom at 21.00 level and
VanEck Vectors Junior Gold Miners ETF (GDXJ) may dip to 29-30 deep or Direxion Daily Junior Gold Miners Index Bull 3x Shares ETF (JNUG) drops to 3.00 – 3.50 (12.00 – 14.00 after 1:4 RS) level.

https://seekingalpha.com/article/4073235-gold-gold-miners-gold-prices-run-will-start-week