Something Really Weird Is Happening In Gold Mining Stocks

2019년 1월 15일

At the time of preparing this report, gold is trading at around $1286 while white metal is hovering around 15.56. In the early-afternoon Tuesday, we have seen weaken gold and silver prices due to the strength we have witnessed in equity market. minor Turnaround in the greenback has also contributed to the slight decline in precious metal sector prices

Most reports came from China and Germany today where we have seen the news that the China central bank will try to stimulate its economy primarily via interest rate cuts and spending on the infrastructure is also one of there agenda however on the other side we have witnessed the lowest GDP numbers for Germany in five years( 1.5%). The other important report came from the U.K about the Brexit and it seems Prime Minister Theresa May’s latest Brexit plan is in serious difficulty-however time will tell

look we are equally skeptical about the stock market crash as you are which eventually will occur but we don't think it's gonna happen soon-There is still much more room left for the USDX to move higher from this level

We witnessed the highest volume of contract holder for gold at the beginning of 2018

most investors and traders tend to enter the market when prices make a substantial rally and gold market is no different. In early 2018 many traders and investors enter the gold market above $1300 and since then they are having a tough time as yellow metal runs into the bear market for the most part of 2018 but as prices approached the levels at which most investors enter the gold market,what do you think these traders are going to do?
well, we believe psychological part will play a crucial role in this situation because whenever a novice trader or investor buys an asset which quickly plunges in price than the trader most likely to sell the asset when it's about to reach the break-even level again due to the fear ingrained in his mind. Over 700 million contracts traded hands during two separate months from January through May. We are not talking about the physical bullion holders which don't care about the short term volatility but funds and institutions tend more to focus on short term portfolio performance- volume has been declining on the price advance since October 2018. we believe gold will retest the low of $1200 along with the decline in silver prices in the coming months

Please note-We are preparing a long report about silver and how we can take the advantage of this lifetime opportunity to make substantial wealth which the silver market is providing us-stay tuned

Our Active position
Short Gold 0.72% -0.41% 0.32% 0.29% -0.22% -(1270)
SL: 1306
TP: 1240
Currency Pair: XAGUSD ( SILVER )

Sell Stop Entry Price:15.800

Take Profit: 14.00

Stop Loss:16.200(we will reduce the stop loss points once positions will be more favorable)

Capital Risk:2000USD(amount may vary depending on your account size and risk tolerance)

Potential Reward: 12000USD

Risk/Reward: 1:6


Currency Pair: XAUUSD ( Gold )

Sell Stop Entry Price:1290

Take Profit: 1160

Stop Loss:1320(we will reduce the stop loss points once positions will be more favorable)

Capital Risk:2000USD(amount may vary depending on your account size and risk tolerance)

Potential Reward: 8000USD

Risk/Reward: 1:4

(we can adjust (limit, close or even reverse) the position before this price level is reached)