{"id":24773,"date":"2025-08-12T07:30:00","date_gmt":"2025-08-12T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=24773"},"modified":"2025-08-11T13:21:34","modified_gmt":"2025-08-11T17:21:34","slug":"the-gold-sector-is-on-the-verge-of-a-sell-signal","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-gold-sector-is-on-the-verge-of-a-sell-signal\/","title":{"rendered":"The Gold Sector Is on the Verge of a Sell Signal"},"content":{"rendered":"

If you’re looking to buy gold stocks, you’ll likely have a better chance to do so a few weeks from now. The gold sector is overbought and on the verge of a sell signal.<\/p>\n

The bullish percent index for the gold sector (BPGDM) closed Friday at 100. That means 100% of the gold stocks in the index are trading with a bullish technical formation.<\/p>\n

It doesn’t get any better than that. And, if it can’t get better, then it can only get worse. Once the BPGDM turns lower from here, it will generate a gold stock sell signal.<\/p>\n

Here’s the chart…<\/p>\n\n

\"\"<\/figure>\n\n

The BPGDM measures the percentage of gold stocks that are trading in a bullish<\/strong><\/a> technical formation. It’s basically a gauge of overbought and oversold conditions.<\/p>\n

Since it’s measured as a percentage, a bullish percent index can only reach as high as 100% or fall as low as zero.<\/p>\n

Typically, the gold sector is extremely overbought when its bullish percent index rallies above 80%. It’s extremely oversold when it drops below 30%.<\/p>\n

Sell signals are generated when the index rallies above 80% and then reverses. The red arrows on the chart show the various sell signals over the past year.<\/p>\n

Here’s how the gold stocks behaved following those signals…<\/p>\n\n

\"\"<\/figure>\n\n

The Gold Bugs Index (HUI) fell immediately on all of the BPGDM sell signals – with three of the four signals triggering declines of 10% or more.<\/p>\n

The most recent sell signal in June, though, didn’t do much damage. HUI fell only about 4% from its high before turning around and surging to new all-time highs.<\/p>\n

Now though, with the BPGDM trading at 100, and with the price of gold looking vulnerable to a pullback if\/when the dollar rallies<\/a>, the next sell signal could be more significant.<\/p>\n

I’m not suggesting traders should sell all of their gold stocks here. But, with HUI already up 60% for the year, and with the BPGDM on the verge of a sell signal, maybe now is not the best time to put new money to work in the gold sector.<\/p>\n

Traders should have a chance to buy gold stocks at lower prices a few weeks from now.<\/p>\n

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

\"Signature\"<\/p>\n

Jeff Clark
\nEditor, Market Minute<\/em><\/p>\n\n

\n

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<\/div>","protected":false},"excerpt":{"rendered":"

If you\u2019re looking to buy gold stocks, you\u2019ll likely have a better chance to do so a few weeks from now. <\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-24773","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/24773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=24773"}],"version-history":[{"count":1,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/24773\/revisions"}],"predecessor-version":[{"id":24779,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/24773\/revisions\/24779"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=24773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=24773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=24773"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=24773"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=24773"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=24773"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=24773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}