Gold is stuck in neutral as the markets await input from the Fed today, but there’s been a bit of green on the screen in our junior mining stocks to offer some encouragement.

March 17, 2021

Dear Fellow Investor,

With a first name like Brien (shortened from “O’Brien”) and a middle name of Flaherty, I’m not used to celebrating St. Patrick’s Day by sitting in front of my computer screen.

But at least there’s a bit o’ green on my screen as I scan down my list of hundreds of junior mining stocks.

There’s little to note this morning, as the world awaits key input from the Fed and Jerome Powell at the conclusion of their meeting in a couple of hours.

While the only thing in question is the degree of hand-holding we’ll get from Powell & Co., the market reaction could change anything I might say now. So it’s somewhat unfortunate that our publishing deadlines dictate that I comment in advance of the Fed’s statement.

Still, I’ll risk noting that gold has shown signs recently of an important shift in sentiment.

Of course, the price has recovered significantly from its recent lows, and the managed-money traders have dumped so much of their long positions that it seems we have bottomed.

But beyond that, gold has managed to do something it has often found difficult — to actually rally during the New York trading session.

Last Friday’s experience was an important example, as gold sold off over $17, but managed to fight back during the day to close well in the green.

Yesterday was a weird session in that the metal traded flat early, spiked higher, sold off dramatically, and then closed with a small gain on the day. And it seems to be following a similar pattern today.

The point is, gold has been fighting off the typical selling pressure on the New York open. This is still a young trend, but it is encouraging so far and is a sign that sentiment is turning positive.

Another piece of evidence is that, even with the Fed meeting looming and the major gold mining stock indices in the red, a large number of the junior mining stocks I track are solidly in the green today.

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In fact, one of our top recommendations in Gold Newsletter is up 31% today alone!

Granted, a one-day data point does not make a trend, but this is an example of how the juniors are poised to break out, given any excuse.

And considering that $1.9 trillion in stimulus is about to hit the U.S. economy…that the April year-over-year inflation comparisons are about to shock the market…and that the powers in Washington are about to turn their attentions toward an infrastructure spending plan approaching $3 trillion in size…

…We’re about to get plenty of excuses to buy gold.

I urge you to prepare for the inevitability of much higher gold prices by getting positioned in the top junior mining stocks now, just as the market appears to be turning upward once again.

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference

P.S. Because this turning point is so important, I’m going to extend our half-price subscription opportunity for Gold Newsletter so you can immediately get full details on all of our top recommendations.

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