NEM (Newmont Mining), Gold Update

This recent post sets us up for today's commentary -  Gold And Silver Update, Commentary And Charts - however those new to this blog should start with the following posting, which provides an overview of our commentary on gold and silver thus far:
Gold, Silver, Updated Chart Of Psychology Of Gold And Silver Investors, PSON, China PMI Hits 9-Month Low, Swiss Lawmakers Reject Government Plan On Banking Secrecy


Below is a current GLD chart, the gold ETF.  We expect pauses on the way up - if gold actually goes any higher - at or between the black gap lines.  Click for a larger image:

We'll keep in mind this quote from our special posting on May 22: "There's a good chance of one more leg down [...]  It could be a small drop, or massive with the resulting bounce not even making it back to today's levels."

That would correspond to approximately $130 in GLD, and as can be seen on the chart above there's a lot of resistance above that level, including the down-trending red line.  Yes, gold can and will go much lower the only question is "when?".  Perhaps soon, and there might not even be a bounce first.  Be prepared for that.

And with that said, it seems fear of a further plunge remains widespread so per our usual contrarian stance we expect that any selling is likely not to push gold or silver to new lows in the near term ($1180 gold, $18.50 silver).


We'll raise our NEM stop further, to $27 on a closing basis, to mitigate risk in case new near-term lows are made in metals or in Newmont. 

 


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