From the Desk of Ian Culley @IanCulley

Silver futures have undercut a critical shelf of former lows.

I find it difficult to hold a bullish bias for precious metals and mining stocks, at least from a tactical perspective.

And when I zoom out to longer time frames, overhead supply looms large across the entire space.

Understand, I believe precious metals and their related stocks ultimately resolve higher, printing fresh all-time highs. 

But before we can put money behind this bullish thesis, these next three charts need to throw it in reverse…

From the Desk of Ian Culley @IanCulley

Silver futures have undercut a critical shelf of former lows.

I find it difficult to hold a bullish bias for precious metals and mining stocks, at least from a tactical perspective.

And when I zoom out to longer time frames, overhead supply looms large across the entire space.

Understand, I believe precious metals and their related stocks ultimately resolve higher, printing fresh all-time highs. 

But before we can put money behind this bullish thesis, these next three charts need to throw it in reverse…

First, here’s the daily chart of silver:

Nothing bullish is happening for precious metals, while silver slides below multi-year support.

Last Friday’s breakdown and oversold momentum reading represent red flags. 

Precious metals demand caution as long as silver holds below 21.40.

Why?

For starters, a breakdown in silver indicates dwindling demand.

We want to witness the entire space participate. Gold’s not going to post new all-time highs all on its lonesome.

Broad participation from silver, platinum, and mining stocks is key.

Silver...

The stage is set for an epic rally. The catalysts are in place.

Yet messy conditions persist as we await ignition and blast off.

Regardless, we can use the current environment to find the most buoyant and promising names.

Check it out...

From the Desk of Ian Culley @IanCulley

With the dollar beginning to rise, gold and silver are coming under some selling pressure.

Nevertheless, these shiny rocks and their related mining stocks are hanging tough.

Instead of getting bent out of shape, I plan on using the recent bout of selling as an opportunity.

When markets come under pressure, it’s time to identify the most resilient names. 

Why? 

The strongest stocks will likely lead the next leg higher.

Some call it the “beachball” effect. These names tend to rip higher after sellers fail to submerge these stocks.

And I have a potential beachball of a gold mining stock I want to share with you today…

From the Desk of Ian Culley @IanCulley

With the dollar beginning to rise, gold and silver are coming under some selling pressure.

Nevertheless, these shiny rocks and their related mining stocks are hanging tough.

Instead of getting bent out of shape, I plan on using the recent bout of selling as an opportunity.

When markets come under pressure, it’s time to identify the most resilient names. 

Why? 

The strongest stocks will likely lead the next leg higher.

Some call it the “beachball” effect. These names tend to rip higher after sellers fail to submerge these stocks.

And I have a potential beachball of a gold mining stock I want to share with you today…

First, it’s a range-bound mess for gold, silver, and platinum futures.

Here’s a look at an equal-weight index of those three metals:

The index currently is turning lower, retesting the lower bounds of a multi-year range.

As long as it remains within “the box,” I have to give precious metals the benefit of the doubt.

And as long as it remains messy, I want to continue to lean on the strongest names out there – on absolute and...

It's the weekly Gold Rush!

This week Strazza and I dig into the COT profile for Gold and Silver, revealing the sentiment behind the smart money.

Check it out...

From the Desk of Ian Culley @IanCulley

What will ignite a precious metal rally to new all-time highs?

We often discuss the dollar and real yields as critical catalysts for a sustained uptrend for gold and silver. It’s simple: These shiny rocks will struggle if the dollar and rates continue to rise. 

But there’s more.

I want to share another crucial piece of the puzzle – commercial positioning.

From the Desk of Ian Culley @IanCulley

What will ignite a precious metal rally to new all-time highs?

We often discuss the dollar and real yields as critical catalysts for a sustained uptrend for gold and silver. It’s simple: These shiny rocks will struggle if the dollar and rates continue to rise. 

But there’s more.

I want to share another crucial piece of the puzzle – commercial positioning.

We analyze the Commitment of Traders (COT) report generated by the Commodity Futures Trading Commission (CFTC), which updates the positions of the largest speculators and commercial hedgers weekly.

We publish a table with this data in our commodities post every Friday.

Our focus lies solely on the commercial hedgers for one reason – they represent the largest short sellers for any given market. By monitoring these players, we discern the attitudes of the strongest hands.

Think of the COT as a sentiment gauge.

Commercial hedgers reached extreme levels in gold last fall, coinciding with significant troughs in price in 2016 and 2018:

Strong hands move markets. And the strongest hands were...

It's the weekly Gold Rush!

This week Strazza and I highlight critical levels to keep on your radar in the coming days and weeks. 

Check it out...

From the Desk of Ian Culley @IanCulley

The dollar is back and on the move.

After falling for four straight months, the US dollar index $DXY is up three days in a row. Whether the near-term dollar strength turns into a more sustained trend is anyone’s guess.

Regardless, risk assets feel the pressure as many areas begin to correct, including precious metals. 

Despite this recent selling pressure, we have clear levels to trade against when it comes to Silver and mining stocks.

From the Desk of Ian Culley @IanCulley

The dollar is back and on the move.

After falling for four straight months, the US dollar index $DXY is up three days in a row. Whether the near-term dollar strength turns into a more sustained trend is anyone’s guess.

Regardless, risk assets feel the pressure as many areas begin to correct, including precious metals. 

Despite this recent selling pressure, we have clear levels to trade against when it comes to Silver and mining stocks.

Before we dive into those critical levels of interest, a friendly reminder…

An overwhelming amount of supply still exists for Gold futures in the 1,924-1,965 zone:

It’s not surprising to witness gold correct below this level, especially since it gained more than 20% off its Nov. low.

In fact, I would be more surprised if gold didn’t pause at this level. I’m not concerned with the selling pressure in Gold.

On the other hand, the next two charts highlight key levels precious metal bulls need to defend.

First up, Silver futures:

I noted a couple weeks ago the bull flag in Silver looked a bit long in the tooth. Fast...

It's the weekly Gold Rush!

While Gold futures digest overhead supply, strength broadens across the metals space.

Check it out...