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Either the meltdown (US equities) is JUST starting… and another HUGE leg down… IE 2008 lows at least… is coming in a near future…
OR gold is just soo much stronger today than back then… just look at the monthly chart… could barely tell there was a sell-off.
Can the lack of liquidity seen in the REPO market finally be over? No more gold sell-off?
OR: Another big SM leg down, accompanied by ‘stronger’ Gold.
The longer the SM downturn, the more likely Gold will lose its relatively strong footing.
And now it’s getting really interesting, with the frenzy to buy physical.
I’ve loved Gold for a long time, but I don’t understand the buying frenzy right now. Buying Gold at 1530 is not going to help get us out of this mess, any more than stockpiled toilet paper. What the world will need in the next year or two while the crisis winds down (besides health care of course) is FOOD. Will the food industry remain viable enough to keep the world supplied?
Whenever therr is the potential for credit collapse, gold will do better than everything else. Even in a hyperinflationary outcome, it’s hard to see how silver and other commodities outperform gold since real economic growth will be pretty much non-existent.
similar to 2003:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=M&yr=25&mn=10&dy=0&id=p25407615324&a=154586903&r=1584480863390&cmd=print
There is still plenty of time for more damage. I think most cycle traders would say a final low is due sometime in the next 6-10 weeks and probably not sooner. It doesn’t mean straight down the entire time, but it will likely be sideways to down for most of that 6-10 weeks. We could also be building out the right shoulder of large a H&S top on this bounce. And if cycles are to be believed, we will absolutely be making a lower low than this week’s low.
Agree with you Nautilus…caution is warrented
Patrick, I noticed that a few of the leading PM stocks soared through their Ichimoku clouds on the daily charts today.