{"id":18574,"date":"2021-06-18T07:30:15","date_gmt":"2021-06-18T11:30:15","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=18574"},"modified":"2021-06-18T07:30:15","modified_gmt":"2021-06-18T11:30:15","slug":"its-open-season-for-gold","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/its-open-season-for-gold\/","title":{"rendered":"It’s Open Season for Gold"},"content":{"rendered":"

Gold was crushed this week.<\/p>\n

The shiny metal was $1,900 an ounce on Monday. It traded yesterday at $1,775.<\/p>\n

All of the gains from the past six weeks have been wiped out. The price of gold is negative for the year… It’s back down to where it was at the low last December.<\/p>\n

On Monday<\/a>, I pointed to the bullish<\/a> setup in the U.S. dollar and suggested a bouncing buck might cause the gold rally to stall for a bit. But, I wasn’t expecting gold to get monkey hammered for $125 in just a few days.<\/p>\n

And, I sure didn’t expect to be telling folks to buy gold this week…<\/p>\n

But, that’s what I’m doing – because it almost always pays off to buy gold when it reaches extremely oversold conditions. Gold hasn’t been this oversold since the pandemic-inspired selloff in March of 2020.<\/p>\n

Take a look at this chart of SPDR Gold Shares (GLD) – the ETF that tracks the price of gold – along with the Commodity Channel Index<\/a> (CCI)…<\/p>\n

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The CCI is a momentum indicator that helps to measure overbought and oversold conditions. Typically, for GLD, readings above 200 indicate extremely overbought conditions. And, readings below -200 are extremely oversold.<\/p>\n\n\n\n
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Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The red dotted lines show each time, over the past two years, when gold reached extremely oversold levels on the CCI. In almost every instance, GLD made at least a short-term bottom and traded higher within a few days.<\/p>\n

In some cases – like late March of 2021 and mid-March of 2020 – gold rallied for several weeks.<\/p>\n

The CCI indicator for GLD reached -355 yesterday. That’s the most oversold gold has been on this chart. In fact, it’s the most oversold condition we’ve seen in the past seven years. Buying gold into this sort of condition often proves profitable.<\/p>\n

There aren’t any guarantees, of course. The price of gold could still fall further from here. Anything is possible.<\/p>\n

But, this week’s decline in the price of gold looks to me like one of the best buying opportunities we’ll have this year.<\/p>\n

Best regards and good trading,<\/p>\n

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Jeff Clark<\/p>\n

P.S. <\/strong>Not only does my colleague Eoin Treacy provide market analysis in his weekly essays, but he also gives his additional thoughts in his video segments.<\/p>\n

So far, he’s discussed inflation<\/a>, bitcoin<\/a>, oil<\/a>, and more. Today, he’s sharing more on what’s been going on this week. So, click down below to hear Eoin’s thoughts.<\/p>\n


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Eoin’s Insights<\/h2>\n

Happy Friday Market Minute readers. Today, I\u2019m sharing another one of my short videos on what I currently see happening in the markets.<\/p>\n

So now, I\u2019ll be giving my thoughts on what the Fed said on Wednesday, where the dollar is moving, and the recent dip in gold. Just click below to watch.<\/p>\n

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