We regularly keep an eye on how Gold is performing in Canadian dollars, a vital issue for current and near-term Gold producers with operations in Canada.
The low value of the loonie is a boon for Canadian producers who are fetching more than $1,700 an ounce for the metal at the moment, less than 20% below its September 2011 all-time high.
This 2.5-year weekly chart from John shows a high probability of a move to Fib. Measured resistance around $1,900. The precise timeline for that is uncertain but the current trend is unequivocally bullish with RSI(14) and the ADX indicator both well positioned to climb higher. Intense sell pressure (CMF) late last year has been replaced with the strongest buy pressure since the first half of 2015, better than anything seen during 2016.
Meanwhile, the U.S. dollar continues to deteriorate from a technical standpoint and is at risk of experiencing a more pronounced dip during the 2nd half of the year.
It all adds up to 1,000 or better for the Venture in the coming months – and Canadian-based Canadian Gold producers and near-producers who will thrive.
