Investors should never cheer for a gold price pullback any more than cheering to get punched in the face in a boxing ring, but it happens. In terms of the fundamentals, the long-term picture is pristine.
That’s because gold buyers piling into exchange-traded funds (ETFs) are taking a pessimistic view of the U.S. Federal Reserve’s ability to cool decades-high inflation without hurting the economy.
No joy anywhere. But if we are headed for a mini-crash then we are reminded that while everyone gets hit the golds have typically been the first to recover.
I'll keep an open mind about this if the targets get smashed, but I'm not convinced the stock market has begun the punitive reset it has needed so badly for years.
Huge attack in the mining stocks yesterday and in silver. Oversold conditions coming about.
Rising gold prices clearly hurts the credibility of the Fed trying to bring down inflation.
