Well folks, the HUI/Gold ratio held up once again as the sector has pulled back. This is not bear market behavior. In a bear market the miners would normally get destroyed in relation to gold on these pullbacks.
And some bigger picture eye candy shows the HGR continuing creep above even the upper trend line. It has been rising for a half a year now.
The gold stocks gapped down at the open and ticked a slight new pullback low today before recovering hard in-day. Note a gap at 175. Huey could be looking at that.
HUI weekly used the EMA 55 as support. Not bad work at all Huey.
I had one of those in and out days and so did not see the market much in real time. But I would hope the reversal had nothing to do with this would-be Fed nominee spewing on about a gold standard.
“A gold standard is to the moochers and looters in government what sunlight and garlic are to vampires,” he wrote. The gold standard has often been touted by Republicans during presidential primaries as a way to seek support from the party’s base.
Sorry boyz, but a gold standard would bring down the edifice of debt that Republicans and Democrats alike have traditionally used to leverage their agendas. It’s not happening. The guy is being nominated by another guy who is still pissed off at Jerome Powell for following the bond market’s instructions and raising interest rates in 2018.
In short, as pertains to our management of the gold sector, it’s all noise and I hope it was not in today’s activity to a material degree.
But as usual, we will go by the charts. The HUI/Gold ratio looks great and HUI is above key short-term support, which had the appearance of a solid test today.
HUI/Gold ratio is a leading indicator and it was intact before this stuff hit the wires and it looks great now. HUI held the channel and lateral support. What’s more, it has so far held the EMA 55 on the weekly chart. I want to see that former bear ball and chain become a bull supporter.
The sector uptrend labors on. Rational gold bugs should hope that today’s news item did not have material input.