It is no coincidence that gold stocks are positive as broad markets correct to varying degrees.
As the inflation trades cool, gold begins to out-perform. Most gold bugs demand – against reality – that gold act as a supreme inflation hedge, which it is not. Hence, our long-standing insistence that inflation cool down before we can take a positive macro fundamental view.
Here are some pictures that would greatly help gold mining fundamentals if they rise and/or continue rising. Note how gold is already starting to out-perform the most inflation-sensitive stuff, i.e. commodities. That could be the beginning.
Let’s add a new twist, given our long standing negative relative view of gold and inflation.