Gold futures tested $1998.40 yesterday, and we see the potential for a post-Fed meeting pullback in precious metals. Gold miners will often lead the metals into key turning points. Here are the levels I am watching in GDX.
GDX DAILY CHART (10:30AM): If GDX closes below $41.70, I see the potential for a top at $44.46. A subsequent breakdown below the mid-July pivot ($36.87) would confirm an intermediate cycle top. If confirmed, expect a multi-week correction back towards the $30.00 level.
Our intermediate Gold Cycle Indicator is at max cycle topping (450), supporting a near-term peak in precious metals. A correction here would trigger a September buying opportunity.
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. For more information, please visit here.
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