Lastly we can see how horribly undervalued Precious Metals stocks are relative to gold itself on our chart for $GDX divided by gold going back to 2001. Only on two other occasions during the life of this chart have they been so undervalued.
Right now, we're just starting the week off, we're up 0.12% at $2164.20. But you've had a correction going on, with lower highs and lower lows in the market.
The worst performing precious metal for the past week was gold, down slightly by 1.1%, as recent U.S. inflation data reduced expectations for future interest rate cuts.
What the market did is it was running day after day six days in a row over the upper Bollinger Band, it pulled back and now it's in that consolidation phase.
The pattern is one of higher lows, we've had higher highs at this point. The market hasn't tried to make a run back to the 18-day average for the main support.
