Gold Sector Weakness On Cue
Fundamentally, the gold stock rally was labeled a “bounce only” because it was just another item rising anti-USD in an ‘inflation trade’ revival. Right along with Oil, Copper and the outliers like REE, Lithium, Uranium, etc.
If we are disinterested in commodities (I am and have been), then we were cautious on the precious metals for this reason.
Like it or not, we are in a process of eliminating the inflationist gold bugs, and a lot of ‘inflation trade’ promoters while we’re at it. I guess that is me being “sanctimonious” as one blog described me recently. I prefer ‘overly judgmental’, but whatever.
Moving on, one indicator of the coming problem in the gold sector was the tried and true HUI-Gold ratio (HUI-GLD used here, while NFTRH used a very similar HUI-Gold chart to note the early caution signal on May 17).
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