Loading ...$XAU – Daily
From some years back I do remember a Sir Rambus quote, “Old necklines never die” – or something to that effect. The fact that $XAU gapped above the neckline extension, then gapped back below the same trend line is significant. One should carefully consider the hot trend line, the rejection at the 200 DMA, and the “abandoned baby.” Together these happenings seem oddly bearish when the fundamentals seem so very bullish.
$XAU – Daily
Damn !
Silverfox, you say fundamentals are so bullish, I will challenge that. Until the stock market rolls off and there is a cascading deflationary impulse then fundamentals are becoming increasing less bullish for the PM stocks. Input costs of production are now beginning to skyrocket. This will impact the producers and the entire industry down the line. I still am looking out for a resumption of the rally here now that Options X is done and the banks have scammed their hundreds of millions, however it is of my opinion that the gold stocks are still locked in a bear market that began Aug 2020.
Interesting and thanks Plunger
I was just about to post the same challenge, but BC beat me to it.
I think ALL PM investors need to revisit their assumptions about what drives this sector.
Over the years, it is my opinion that most pundits have it wrong.
Only a few seem to nail it.
It comes down to Real Rates and more precisely, Expected Real Rates, since the sector is more forward looking than most.