Pinpointing the Major Bottom in Gold Stocks

October 10, 2023

by Jordan Roy-Byrne GoldSeek

The current macroeconomic backdrop should ultimately lead to a favorable outcome for precious metals, but, in the interim, it is putting pressure on that asset class. Most notably, higher real interest rates and a strengthening greenback provide headwinds.

The timing of the transition to that favorable outcome is difficult to discern.

However, when focusing on gold stocks, we can use several indicators to pinpoint major lows and low-risk buying opportunities.

In the first chart, we plot GDX and six different breadth indicators. The first three show the percentage of miners (in the HUI index) that closed above the 20-day, 50-day, and 200-day moving averages.