It was a difficult week. Gold crashed, then stocks had a mini-crash, oil crashed, the U.S. Dollar soared then suddenly fell, bond yields fell suggesting bond yields may have topped.
China’s gold imports spiked to the highest level in almost two years. Platinum is the rebound trade on a normalization of chip shortages in the auto industry; substitution from palladium should also help.
I’ve suggested that gold investors need to be prepared to watch gold dip below $1800 (and perhaps as low as $1566-$1450) before an enormous rally towards $3000 gets underway.
I tried to warn gold bugs that this was likely to happen, that the intermediate cycle was getting late. This last rally failed short of making a new higher-high. The rally did not do what it needed to do.
