Gold Miners Supporting a Breakout in Precious Metals

After a prolonged decline, gold miners are finally showing signs of strength. The charts below support an immediate breakout and renewed uptrend. This dovetails nicely with our Gold Forecast supporting a return to $2000 by August.

GOLD MINING ETF (GDX): I believe gold miners formed a bottom in March. If correct, prices should stairstep their way back towards the $45.00 level and potentially to new highs by August.

NEWMONT (NEM): We are getting a robust move in Newmont above the March high and intermediate trendline. By all measures, it looks like a breakout. Prices could reach new all-time highs as soon as May.

FRANCO-NEVADA (FNV): Franco-Nevada was the first to break above the March high. Prices are above the 200-day MA after forming the small bull flag. The trend should continue back towards the $160 level and new all-time highs.

KIRKLAND LAKE GOLD (KL): Kirkland Lake Gold is my favorite gold producer and could have significant free cash flow in 2021. They have zero debt and $850 million in cash. Prices formed a picture perfect W-bottom in March and are breaking out as I write. This is my highest conviction holding; I am significantly overweight.

Our Gold Cycle Indicator is at its most bullish reading (ZERO). Our Educational Portfolio has been buying miners aggressively. I believe it is well-positioned for the next advance. 

 We recently updated our Top 10 Speculative Gold Stocks. Several companies have gold in the ground selling for just $10 per ounce. For more updates, please visit here.

Disclosure: I am long all the stocks mentioned in this article.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle.

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