Agnico Eagle Mines Ltd. (AEM.TO) - June 27, 2025

Today’s inflation report showed price pressures heating up again, with the Fed’s preferred gauge, core PCE, rising to 2.7% year-over-year in May, above expectations. Headline inflation also ticked up to 2.3%. This persistent inflation, driven by housing costs and emerging tariff effects, has dampened hopes for an interest rate cut before September. Meanwhile, consumer spending and incomes declined, suggesting Americans are feeling the strain. Overall, the data reinforces the Fed’s cautious stance and signals that inflation remains stubbornly above target. Despite hotter-than-expected inflation data, gold prices fell over 1% today to around $3,288 per ounce. The drop came as investors locked in profits following gold’s recent surge to record highs earlier this month. A stronger U.S. dollar and improved market sentiment, driven by easing geopolitical tensions and rising equities, also reduced demand for the safe-haven asset. The sell-off underscores how profit-taking and broader market dynamics can outweigh gold’s typical role as an inflation hedge. In lieu of this news and reaction around gold bullion, we thought it time to check in with one of the favored names on the SIA S&P/TSX 60 Index Reports, Agnico Eagle Mines Ltd., where the shares have produced a year-to-date rate of return of 50.44% but have recently struggled with resistance at $173.06 as gold has also struggled with resistance at $3,453.12 several times over the past couple of months. Having said this, there are still reasons to stay positive about the technical picture of Agnico Eagle Mines as it still carries a perfect SMAX score of 10 out of 10 and the sector is still residing in the favored zone of the SIA Sector Report, all attributes that SIA practitioners might look for in portfolio construction. However, the building resistance is becoming hard to ignore, especially given the level of geopolitical complexities and the persistent inflation numbers that continue to present to investors and consumers alike. Given the possibility of any momentum declines, let’s take a moment to review the point and figure chart for support levels advisors might want to be mindful of, which initially appears to be close to breaching, assuming a close at current levels of $157.68, just above the 3-box reversal resistance at $156.75. Other notable support levels that might need to hold before relative strength starts to wane would be $144.81, $139.19, and further down at $121.17, with the last level representing a 23% decline from current prices.

To provide some backdrop for gold companies, let’s next look at the product they manufacture, gold bullion, as seen via the SIA Gold Continuous Contract, which is scaled at 1% and currently trading at $3,287, a short distance from the 3-box reversal level resistance at $3,285.52. Should this level be broken, the next level of support might become $3,157.32, followed by $2,944.89, with this lower level representing a 10% pullback. Meanwhile, this metal futures contract still holds an SMAX score of 9 out of 10, suggesting strong technical attributes compared to other asset class alternatives. All this might just serve as a good journal reference point for any changes in technical strength that could develop in the coming weeks or months, where current investors would be keen to see these support levels hold and to see the price of bullion rise even higher along with the gold mines they are invested in.

To the upside the number $3,453.12 could very well be the important resistance level that Gold would need to breach for a breakout to occur on the point and figure chart.