Gold’s ratios to cyclical markets continue to pivot
Just an updated picture of the macro pivoting toward what will be a positive fundamental backdrop for gold mining. The holdout continues to be the last inflated man standing, crude oil and the energy sector. While Gold/Oil is still pinned gold has made a move of the bottom vs. Energy stocks (XLE). That’s something, at least.
When gold mining cost structures improve (if these charts fully bottom and turn up) and as market sentiment swings toward the miners (Gold/SPX & Gold/DJW) and pending any ill-timed gold bug puking, we just may get the turn this summer. I hope so because I have several articles out there calling 2022 ‘the golden year’. It seems to be in process.
Meanwhile, I am giving some breathing room to an interim Goldilocks scenario where Tech/Growth/Story stocks catch a relative bid on any bear market rallies to come. That is, if the decline in inflation expectations continues.
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