Gold and Silver: The Serious Correction and Next Buy Signal

Summary

The intermediate-term correction in gold and silver is intensifying, driven by a significant breakout in the 30-year bond yield, which has reached its highest level in nearly two decades. Historically, rising yields have pressured gold, though this hasn't been the case recently due to gold's new secular bull market. The current decline is attributed to gold being overbought and an analog chart predicting a potential 20% correction. This correction is expected to continue for the next few weeks to a couple of months, mirroring patterns seen after previous major gold breakouts in 1973 and 2006. Silver's correction, though more volatile, also appears to be following a similar path, with support levels around $70 and $66-$67. The speaker anticipates an excellent buying opportunity in gold, silver, and miners, likely in mid-June to July, as these corrections set the stage for another major upward leg. For junior mining stocks, the analysis suggests substantial upside potential over the next two to three years, with a focus on companies that can add value independent of metal price surges. Key technical indicators, particularly breadth indicators for GDXJ, signal a potential significant bottom when percentages of stocks above moving averages approach zero and fall below 30% for the 200-day moving average.