A Precious Metals & Miners Update

It’s time for a weekend precious metals and miners update, and in this update I will also share some of the individual miners and basic materials stocks that I like most. As I expected in my midweek update, precious metals have cooled off a bit following their sharp surge in early August. I am happy to see this action because it creates more favorable entry setups rather than buying late into a sharp rally and risking having to endure a pullback shortly afterward.

Now let’s take a look at where precious metals stand, starting with gold, which leads the overall complex.

After rebounding sharply from its $3,900 to $4,100 support zone and breaking above the downtrend line that had been in effect for much of the 2026 correction, gold is now firmly within its $4,300 to $4,600 resistance zone, which formed over a nine-month period from the key highs and lows between October and June.

This recent price action is all very encouraging, and there is a strong likelihood that the correction that began in January is now over and that gold, along with precious metals in general, will resume its long-term bull market through the end of the year and beyond. That said, I would like to see gold completely push above its $4,300 to $4,600 resistance zone for even greater assurance that the correction is indeed behind us.

To learn more about support and resistance zones, I recommend reading my two-part tutorial (Part 1 and Part 2).

As I said in my midweek update, gold became a bit extended after its 8% rally since the start of August, and I recommended that traders be cautious and avoid jumping in aggressively, if not already long, until a shallow pullback or consolidation occurred. Sure enough, that consolidation began during the last few days of the week and probably needs a bit more time to develop.

This is all good and healthy behavior that is setting the stage for the next leg of the rally, and a breakout from this consolidation should provide another solid opportunity to get on board. I will notify you when that occurs.

As a reminder, I firmly believe that precious metals and miners are in a long-term bull market that began only in April 2024 and has at least another eight years to run based on historical cycles. I believe the January-to-August correction was merely a healthy pause within that bull market rather than the beginning of a new bear market. Read my report from a few days ago, where I explained this thesis in detail.

Over the past few weeks, silver has rebounded precisely off its $45 to $55 support zone, broken above the downtrend line that had been in effect since late January, and is now firmly within its $60 to $70 resistance zone, formed by the key lows between December and June.

This is all very encouraging behavior that I take as a sign that the correction is likely over, though I would like to see a solid close above the $60 to $70 resistance zone to feel even more confident in that assertion.

As I said in my midweek update, silver was a bit extended after its 10% rally, so I urged caution for any traders considering entering a new position, lest they get caught in a pullback or consolidation, even if it proves to be shallow and brief. Indeed, that consolidation began toward the end of the week, but so far it has been healthy, and the recent breakout above the downtrend line remains fully intact.

I would like to see a bit more consolidation to create another solid, low-risk entry opportunity for traders looking to go long upon the next breakout, and I will let you know when that occurs.

As a reminder, my position is that silver is still in the very early stages of a long-term bull market with many more years left to run, and that the correction since January was not at all the end of that bull market, but simply a pause after two very strong bullish years. I explained this thesis in detail in my recent silver report.