A couple of days ago I urged gold bugs to be satisfied with a slow-but-sure move higher in gold.

With gold since breaking through the key level of $1,900, it looks like we might be getting much more than that.

May 26, 2021

Dear Fellow Investor,

Sometimes I’m a great contrary indicator for gold.

On Monday, I urged gold bulls to calm down...stop waiting for a red-hot rally in gold...and be content with a slow-but-sure move higher.

Apparently that was gold’s signal to take off.

Yesterday, gold soared about $18 after disappointing data came in for consumer sentiment and new home sales provided a minor, but sufficient, excuse for it to break higher.

On a spot bid basis on Kitco.com, the price hit a road-block at the key $1,900 level and finished just pennies below that ceiling.

But it wasn’t going to allow the New York trading shenanigans to keep it in check, and the price broke through decisively in overnight trading, peaking around $1,913 in early New York trading before being driven back.

As I write, it’s holding steady a few dollars above that $1,900 line.

Key Milestones Ahead And Behind

It behooves us to remember that gold has a habit of taking a few tries to finally surmount key “big number” levels.

So it would not be surprising to see the price re-test $1,900 and even dip below it a time or two before finally surmounting that level.

This said, I should also note that gold didn’t need more than one try to get through $1,800 or $1,850, both very important steps in gold’s rebound from the March double-bottom.

In fact, the price is up fully $122 over the last 30 days. So what we’ve had so far, and may be getting in the days ahead, is anything but the “slow but sure” move that I was counseling bulls to be satisfied with.

So where do we go from here?

There are two key levels just ahead that bear watching. One is the 2011 peak of $1,920 and the other is the 61.8% Fibonacci retracement line around $1,930. As with the other key levels, breaking through these lines of resistance will bring in further buying from technical traders and algorithms.

In short, whatever happens over the next few days, it seems that the game is back on for gold...and junior mining stocks.

In regard to the latter, I noted on Monday that the junior miners had yet to respond to gold’s rebound and that the window to get positioned was still wide open.

I’m here to report today that this window is closing.

My screen is green as investors are just now starting to wake up to the new bull run in metals. The time to get involved is now.

And the timing is perfect for the two new stock picks I’m unveiling in our June issue of Gold Newsletter which I’m writing right now (I just took a break to get this Golden Opportunities update out the door).

• One of these recommendations is a perfectly positioned new copper play that already boasts a major resource that the market is almost completely overlooking. The drill program they’re about to begin is poised to increase that resource that the market will find impossible to ignore.

• The second pick is a good, old-fashioned drill-hole play with a still-tiny market cap. The upside is huge if their drills hit, but the risk is mitigated: They’re drilling smack-dab in the middle of an historic resource that averaged multi-gram gold!

A number of our recent picks are already taking off and I expect no less from these two new recommendations. Either of these could pay for your subscription to Gold Newsletter hundreds of times over.

If you’re not already a subscriber and want to be one of the first to get these new recommendations, simply CLICK HERE to sign up now.

All the best,

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