The stock market looks ready for a pullback. This, while gold looks like the foundation is being laid for another $200/ounce rally, with $300-$600/ounce in gains in just a few months of time… becoming a strong possibility.
Precious metals are ready to complete their daily cycle lows, gold tested a major support zone near $1,800 on Sunday evening & looks like it could swing higher.
Another historic week in the U.S. but markets and the economy continue to rattle on. We are seeing some divergences in the indicators suggesting that volatility could heat up. The put/call ratio hit another record low in favour of calls. Bond yields have been rising and spreads between the short and long end are as favourable as they have ever been. That’s great for banks. Upward pressure on yields has put upward pressure on the U.S. dollar and that weighed on gold this past week.
While many gold and silver investors are frustrated that the price hasn’t kept up with the insane amount of money printing taking place around the globe, most are completely unaware that gold has massively outperformed the stock market over the past 20 years.
