Gold Is Finally Correcting

Source: Michael Ballanger 04/17/2025

Michael Ballanger of GGM Advisory Inc. shares his view on current movements in the market, specifically looking at gold.

The USD dollar index futures (+0.08%) are up to 99.225 with the U.S. 10-year bond yield (+0.12%) to 4.284% and the 30-year (+0.13%) down to 4.753%.

June gold futures (-0.22%) are down $7.24 to $3,339.16, May silver (+1.43%) down $0.47 to $32.510, May copper (-1.37%) down $0.0640 to $4.6215, but oil (+1.44%) is up $0.90 to $63.37/bbl.

The DJIA futures (-1.35%) are down 534.2 points; the S&P 500 futures (+0.35%) are up 18.4 points; and the NASDAQ 100 futures (+0.93%) are up 170.25 points.

Risk barometer Bitcoin (+1.05%) is up to $84,684 but remains in bear market territory, down 22.6% from the recent record high at $109,410.

Stocks

We have a bifurcated market this morning, thanks to an announcement by UnitedHealth (UNH:US), which plummeted 20% in premarket trading after lowering its annual profit forecast on expectations of high medical costs for the remainder of the year.

Since UNH is a heavily-weighted component of the DJIA, that index is off sharply while the S&P 500 and NASDAQ 100 are modestly higher. This also means that the SQQQ:US trade, which exploded higher out of the gate yesterday, will be lower this morning, giving us another opportunity to add the remaining 50% tranche.

I bought a 50% position at $5.00 yesterday to complement the 50% holding in the SPY. My $500 puts, which are on the books at $5.50. The SQQQ May $35 calls went out at $6.03 after trading up to $7.10, while the SPY My $500 puts went out at $8.30 after trading up to $10.38.

In the GGMA 2025 Trading account:

• Add 50% position (50 contracts) SQQQ May $35 calls at $5.25

New adjusted cost will be $5.125 for 100 contracts.

• Add 25% position (10 contracts) SPY May $500 at $7.00

New adjusted cost will be $6.00 for 30 contracts.

Gold

As a gold (and copper) bull, I am proud to say that I am anything but a gold “bug.” Gold “bugs” cannot and will not ever sell as much as a nickel worth of any gold position. Silver bugs are even worse. They take immense pride in “stacking” thousands of ounces and hiding them in the broom closet or under floorboards in cabins hidden away in the woods.

Me? I do not suffer from maladies such as those of the “bugs.” As you can see from the chart shown above, the trend line for gold has indeed moved from “gradual” to “vertical” and is now approaching the terminus of the advance. Now, it doesn’t provide me with any clues as to what the exact price

will be the top of the advance; it only tells me that in terms of the X-Axis — time — a near-term top is close.

I swore that I would refrain from messing with the gold market karma by shorting the GLD through limited-risk put options, but it is now time to hedge the profits in the gold market.

In the GGMA 2025 Trading Account:

• Buy 50 contracts GLD May $300 putsat@ $5.50 Target $10.00

This is a short-term trade and assumes that a “breather” will set up a larger advance going into the latter half of 2025 and into 2026.

Juniors

The cheapest junior I have ever covered is Getchell Gold Corp. (GTCH:CSE; GGLDF:OTCQB) and that is not a compliment to me or to the company. They have doubled the resource at Fondaway Canyon while delivering a robust PEA detailing a 10.3-year Life of Mine that at $2,250 gold generates a $474 million of after-tax cash with an IRR of 46.7%.

All at a gold price at two-thirds of the recent high!

I bought more yesterday and continue to believe that it will find an eager buyer before 2025 is over.

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Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Getchell Gold Corp.
2. Michael Ballanger: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.
3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

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