With the understanding that the precious metals are still trending down by daily charts and the broader markets are still trending up, here’s a dialed-in look at some day trader type in-day charts showing gold doing what it is supposed to do when the system comes under liquidity stress and showing a microcosm of why I belabor the point about liquidity stress (not inflation) being the time to pay attention to improving gold mining macro fundamentals.
Gold/US broad large caps (GLD/SPY)
Gold/Global stocks (GLD/ACWX)
Considering that the gold miner indexes/ETFs have declined to long-term support, although not to some of our open downside targets, I am going to apply the ‘open minds’ theme to the precious metals complex. I mean, there is a reason that the sector went bearish over a year ago and has stayed that way. Today, that reason is getting an interruption at best at a time to consider all the good corrective work the miners have already done (unlike broad markets).