On the weekly chart, the gold market still has lower highs and lower lows. The correction ran its course, and the market is now in a bullish phase again.
Gold does look like it’s going higher, but at this point, the miners don’t need higher gold to massively outperform the underlying metal or to soar against fiat.
Weekly chart shows lower highs/lows, but June daily bars reveal a swing up. Breaking $3255 means higher highs/lows, ending the downtrend, starting a bullish phase near the 18-day average.
As cap rates compress amid rising capital costs and with the 30-year Treasury yield hovering near 5%, real estate investors seeking yield diversification may turn to gold mining equities.
An “inflation trade” featuring a broader group of commodities is possible, even probable. The trigger would be the Silver/Gold ratio bottoming and turning up.
Gold price rise has been accompanied by rising intraday price range. Day traders are making good money or can make good money in intraday trading of gold.
