Buy GDX below 19.1 for a target at 22.15 (dovish Powell bearish dollar and bullish gold)


“Powell’s speech was seen a touch dovish,”boosting gold’s appeal

Federal Reserve Chair Jerome Powell signaled policy makers are sticking to gradual rate increases. Powell said the fundamentals of U.S. economic expansion look strong and a gradual process of normalization remains appropriate. While unemployment is below the Federal Open Market Committee’s longer-run estimate of a rate that corresponds with non-inflationary use of labor resources, “there does not seem to be an elevated risk of overheating,” he said in remarks prepared for the Kansas City Fed’s annual policy symposium in Jackson Hole, Wyoming. “There is less reason for Fed to do more rate hikes that they currently signaling,”

Sentiment analysis on Gold:

The Optimism Index on gold has moved above 30 after dropping below 20 in the past week. There have been five similar signals
since 1991, leading to a positive return over the next three months four times, with one minor loss. Its risk averaged only -1.8% versus reward of
+5.4% as sentiment continued to recover in the months ahead. The dates were 1997-02-18, 1997-12-24, 1998-01-20, 1998-09-08, and 2001-