This is what always happens to gold before the first rate hike of a new rate hike cycle from artificially low Fed Funds Rates. Everybody assumes the rate hikes are bad for gold and they sell gold ahead of time. The last thing that we would want to see is gold rallying before the rate hike. We want all of the sellers to be flushed out before the rate hike, so that afterwards... there is nobody left to sell.
It's always possible there could be one last bit of selling after the rate hike this afternoon, but then the rally would begin tomorrow... this is why we said gold would likely be down on Monday and Tuesday but then reverse higher on either Wednesday afternoon (after the rate hike) or Thursday (tomorrow).
The only remaining confirmation of a new gold bull market that we had been waiting for was exactly what occurred yesterday, GLD strongly declining on a day GDX and GDXJ were modestly up. If you look at the three previous occasions that this happened in history, on 2 of the prior 3 occasions... gold had one more down day (today) and then began to rally in the following days.
This is why we did NOT predict new 52-week highs for North Peak Resources (TSXV: NPR) or BTLLF on the U.S. OTC this week.
We said new 52-week highs are coming NEXT week!
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