The path of least resistance for the gold stocks in the short-term is higher. Even when they were extremely oversold in 2008, 2013, and 2014, they enjoyed a relief rally before more selling.
Gold and Gold stocks have fallen to levels from which we should see excellent returns over the next 12 months and potentially spectacular over the long term. However, that does not mean a bottom and reversal are imminent.
It makes sense that precious metals would bottom right before the last rate hike. The market is now aggressively pricing in rate cuts in 2023. Now is the time to be a buyer of weakness.
While a summer rally for gold looks ready to begin, the most likely time for a major move higher above the key $2000/ounce zone is early 2023. Here’s why..
That will catapult gold prices much higher in coming months, and gold stocks will amplify their metal’s gains like usual. The extraordinarily-overbought US dollar rolling over will..
