They did not full-on puke as in ‘capitulation’, but they did burp up gold mining shares based on some interest rate manipulating entity’s meeting minutes and the fear that said entity will manipulate interest rates in a gold-unfavorable manner. Why, even Jumpin’ Jim’s going on about the beast known as Yellen.
Reference the post Inflationist Gold Bugs Have Driven the Rally from last week. Silver bugs and commodity gurus have been out front since February and we have been warning that the formerly deeply over sold gold-silver ratio (GSR) had taken on a bottoming posture.
We also noted that a GSR bottom could benefit USD beyond the bounce target of 94.50. Well, at 95.20 that prospect has improved.
Inflationist gold bugs are hopped up on dogma and wrongheaded ideas. Consider that they did this to the HUI even as a situation that had been slowly eroding the sector’s fundamentals got pushed back today. Makes sense considering that they did the most intense buying while the fundamentals were eroding.
Whether this is the real correction or it is still out on the horizon, you do not buy with the zealous gold bug. You buy when he pukes.
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