Dear Fellow Investor,
A technical “catapult” will be triggered if this gold rally continues for just a little bit further.
To catch you up, gold’s racing higher again today up another 1% as I write. The dollar is weak today, which is helping, but it’s important to note that gold was already moving upward this morning when the dollar was showing strength.
Also important is the fact that the gold stocks are doing much better — the major gold mining indexes are up 4% or more today alone.
That’s particularly exciting for us, and for my Gold Newsletter readers, as our junior mining stock picks are beginning to take off.
The highlight, of course, is Great Bear Resources (GBR.V; C$3.85), which I recommended a little over a year ago at C$0.33 in one of our Gold Newsletter Alert issues.
We’re up over 11 times on that pick, and I think it’s going to do much better. (Which is a good thing, because I ate my own cooking on that one and own a nice position personally.)
I’m also confident that the rest of the companies in our Gold Newsletter portfolio are going to do spectacularly well.
But here’s the key: A very big move could happen very soon, because gold is surging toward a crucial launching point...
Here’s What Lies Just Ahead For Gold
As I write, spot gold is trading right around $1,340. A number of gold analysts are proclaiming that gold will leap higher once it clears $1,350, as that’s the key resistance level that the metal has failed to clear despite a number of attempts over the last few years.
As you can see from the following chart, after the price bottomed in December 2015 the high for gold was right around $1,372. That’s the key level that the price must break through to beat the previous high.
But there’s where it gets really interesting.
As you can see from this chart, once gold clears $1,372, the next important target would be $1,400. (Actually, it would be $1,417, but getting above the “big number” of $1,400 would bring in a flood of buying that would obliterate any nearby resistance levels.)
And once gold gets above that big number, there’s little-to-no technical resistance before the price gets all the way back to around $1,800 or beyond.
That’s why so many analysts and investors are excited about gold right now. The next important target is a little higher than most are saying — around $1,372 instead of $1,350 — but the potential after that is truly exceptional.
How To Profit
Once gold clears these key technical hurdles the price could catapult higher as generalist, technical traders rush into the market.
It would be one of the clearest, strongest buy signals most traders have ever seen.
In that environment, junior mining stocks would rocket higher. As I noted, the companies in our Gold Newsletter portfolio are already beginning to respond.
If you’d like to discover all of our recommended companies, including our top picks that we feel have the potential to triple or more in value, CLICK HERE to subscribe to Gold Newsletter.
But whatever you do, act soon to make sure you’re positioned in the best junior mining stocks now.
Gold seems to be talking straight aim for those important resistance levels, and it could clear them any day now.
All the best,
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference