To speak fundamentally, the gold remains undervalued whilst the S&P severely overvalued. From 2001, gold outperformed the S&P (including dividends) by nearly three times! Gold wins.
Many analysts believe the interest in gold is spilling over into the platinum market. Platinum jewelry sales were up nearly 300 percent year-on-year in the first quarter.
You have higher lows and higher highs – that's bullish. When you throw on Bollinger Bands, you get a target of $3409 if the market were to take off to the upside.
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.
