Gold Makes New Weekly All-Time Closing High Above $5,100/oz, Bullish Junior Gold Miner Charts
A very strong close to the week, with the yellow metal managing to grind out a 1% weekly gain.
Gold gained more than $100/oz on Friday, completing its highest weekly close in history, above $5,100/oz:
Gold (Weekly)
Meanwhile, silver tacked on more than $6/oz to finish the week, printing a bullish engulfing candlestick on the weekly SLV chart:
SLV (Weekly)
Over the course of several sessions, silver tested the lower boundary of its recent $70–$85 trading range before rebounding and closing near the upper end of that band.
The pullback appears to have effectively reset sentiment across the precious-metals complex. The Daily Sentiment Index (DSI) for both gold and silver slipped into the mid-50s earlier in the week, while short interest has begun to climb. In a recent discussion with Vince Lanci, we noted that silver bears have grown increasingly numerous — and noticeably more vocal — over the past couple of weeks.
Against that backdrop, with a non-zero probability of strikes on Iran potentially commencing this weekend, it’s not entirely surprising to see a Friday afternoon short-squeeze emerge in precious metals.
At the same time, the number of constructive technical setups among junior gold mining equities has expanded meaningfully over the past week.
Awale Resources (Daily)
Banyan Gold (Daily)
Aurion Resources (Daily)
Scottie Resources (Daily)
Talisker Resources (Daily)
And a strong finish to the week from Sitka Gold (TSX-V:SIG), a stock that I wrote about a few days ago:
Sitka Gold (Daily)
Another chart that caught my attention earlier in the week, Hecla Mining (NYSE:HL), prompted me to enter a trading long position in the North American silver/gold producer:
Hecla Mining (Daily)
Tuesday morning’s failed breakdown below $21 support in HL appears to have set in motion a classic ‘from failed moves come fast moves’ in the opposite direction setup.
I am long Hecla from the $22s, targeting a breakout > ~$24.00, and a potential near-term gap fill up in the $26s.
One additional chart that caught my attention on Friday is Founders Metals (TSX-V:FDR):
Founders Metals (Daily)
While FDR has an overall messy chart, it recently put in place a potential double-bottom near the ~$3.30 support level. Friday’s strong impulse of buying pressure on more than 3x average daily volume is noteworthy.
While I don’t currently hold a position, Founders is at the top of my radar.
Overall, a very encouraging week for precious metals and miners, but we’re not out of the woods yet with the “PDAC curse” looming in less than two weeks ;).
I wish everyone a Peaceful weekend and appreciate your readership.
Disclosure: Author owns shares of some stocks mentioned in this article including Hecla Mining, Awale Resources, Banyan Gold and Aurion Resources. Author may choose to buy or sell at any time without notice.
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