I am of the opinion that the gold cartel will lose this battle to keep gold under $1,800. But expect the cartel to attack, but soon gold will break through the resistance zone.
But economic numbers this past week for the U.S. were stellar. Did the markets soar? No, for the most part they were flat or down. Sell on news? Sell in May, and go away? We continue to believe we are near at least a temporary top but any correction should be reasonably shallow.
Fortuna Silver Mines is acquiring Roxgold. Fortuna shareholders will own 64% of the combined company. The price offered is a 42% premium to the pre-announcement price but is at 0.88x of NAV.
Gold still in a bear market rally until we can break and close above $1,783. Daily chart shows Thursday's wide range action. Bear trap? Odds are not high.
