When gold rallies, these mining shares win big

TL;DR

Gold miners like Newmont Mining show bullish signs amid negative sentiment and technical support.

Transcript

hello it's john burford with chart of the week for monday the 25th of july and i'm covering a very neglected asset of gold who's talking about gold these days precious few people uh it's been on a slide for quite some time since uh earlier in the year um it made a double top i believe i can go into that a little bit later but um i want to make the ... Read More

Key Insights

• 🏅 Gold miners, such as Newmont Mining, are at major support levels, indicating a potential bullish trend.
• 😘 Momentum for gold miners is historically low, suggesting a contrarian buying opportunity.
• 💁 Technical analysis shows support levels and bullish pattern formations for potential rallies.
• 🏅 Gearing ratios can amplify the performance of gold mining shares relative to the gold price.
• 🎁 Negative sentiment towards gold presents an opportunity for investors.
• 🥺 A lack of interest in gold may lead to undervalued market conditions.
• 🏅 Tramlines on gold price charts can provide support and resistance levels for predictions.

Questions & Answers

Q: Why are gold miners like Newmont Mining considered undervalued?

Gold miners have experienced a significant decline but are now at major support levels, presenting a buying opportunity based on technical analysis.

Q: How does the gearing ratio impact gold mining shares like Newmont?

The gearing ratio of around two to one for Newmont means that its shares can rise at a faster rate relative to a rise in the gold price, making them potentially lucrative investments.

Q: What technical indicators suggest a potential rally for gold miners?

The momentum for gold miners is at historically low levels, while technical analysis shows support levels and bullish pattern formations, indicating a possible rally ahead.

Q: Why does the negative sentiment towards gold present an opportunity for investors?

A lack of interest and negative sentiment towards gold can create an undervalued market, offering a favorable entry point for investors seeking potential returns in gold miners like Newmont.

Summary & Key Takeaways

• Gold miners, especially Newmont Mining, have fallen but are now at major support levels, indicating a potential bullish trend.

• Momentum for gold miners is at historically low levels, suggesting a contrarian buying opportunity.

• Technical analysis and market sentiment indicate a favorable outlook for gold miners like Newmont.