THE DAILY GOLD PREMIUM FLASH UPDATE THURSDAY, AUGUST 27, 2020

The Daily Gold Premium

Editor: Jordan Roy-Byrne CMT, MFTA

The gold stocks put in a short-term low Tuesday and followed that with
CONTENTS strength on Wednesday. That action coupled with Fed Chair Jerome Powell’s
speech today is leading some to think this is the start of another leg higher.
Summary ... 1 The premise is Powell will say something or indicate something that will
spark a new leg higher in the precious metals sector.
GDX … 2
Roscan Gold … 3 Recall the comparison with the 2008-2009 recovery and the correction that
began in February 2009, which is very comparable to this August. GDX
Integra Resources … 4
corrected 23% in 15 days then rallied 33% in 12 days back to the high. From
there it corrected 21% in another 15 days. At present, GDX has corrected
15% so far. So it is feasible it could get a Fed-induced bump for a week or
two, before the correction (in time) resumes. (A record breaking run over 4-
months is highly unlikely to be corrected in only 3 weeks and especially
when the correction in price was so mild).

There are other reasons why this is unlikely to be the start of a sustained leg
higher. GDX is showing a slight negative divergence with its advance decline
line, which is an important leading indicator. GDX is holding up okay against
Gold but silver juniors (SILJ) have lagged Silver. Furthermore, the stock
market is roaring higher and outperforming gold stocks right now.

Nothing has changed with my view on the sector other than potential for a
counter trend rebound for a week or two. But note that these Fed events are
notorious for giving false signals. You really have to wait to see what
happens day two and three after the Fed decision or speech.

Turning to our stocks, Rio2, Liberty and Osino were very close to buy targets
Tuesday. We are +90% invested and in no rush. But, the two stocks on our
watch list Roscan Gold and Integra are at reasonable valuations. Integra has
corrected 27% and Roscan 42%. If I had to buy something today I’d buy half
positions in both.

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 THE DAILY GOLD PREMIUM FLASH UPDATE THURSDAY, AUGUST 27, 2020

GDX

We plot GDX along with its advance decline line and its ratio against Gold. The ratio against
Gold has held up okay but the A/D line is showing a negative divergence.

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 THE DAILY GOLD PREMIUM FLASH UPDATE THURSDAY, AUGUST 27, 2020

Roscan Gold (ROS.v, RCGCF)

Roscan Gold traded as low as C32.5c before bouncing bit. Volume was decent but not huge.
The stock bottomed right where it peaked at the end of March. Moving forward, C34c is
support as is C32.5c and C30c. Unless Mali spirals out of control, which I doubt (no one has
died there despite the coup) I think Roscan holds above C30c.

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 THE DAILY GOLD PREMIUM FLASH UPDATE THURSDAY, AUGUST 27, 2020

Integra Resources (ITR.v, ITRG)

Integra Resources closed the day at C$4.60. The stock had corrected 27% down to C$4.40.
The bounce was weak. This stock could chop around for a few months. But this is a
reasonable entry point for a half position. Company report on Integra was published in TDG
#679.

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 THE DAILY GOLD PREMIUM FLASH UPDATE THURSDAY, AUGUST 27, 2020

Disclaimer
© 2020 Jordan Roy-Byrne. The author of this newsletter is not a registered investment advisor. This
newsletter is intended only for informational, educational purposes only. It is not investment advice and it is
not individualized or personalized to meet your specific situation. Its content should not be construed as
personal investment advice. The information, facts, figures, data and analysis included in this newsletter are
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newsletter does not, nor could it; take into account the needs, objectives and financial situation of its
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incurred from your own decisions, while using this information and analysis at your own risk. Jordan Roy-
Byrne or his family may or may not own shares in the investments and companies discussed. Photocopying
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