ST momentum some have speculated in AUD is the result of potential Chinese stimulus hence we see a buoyant IOP as well as Brazilian supply issues. Personally I see betting on another big Chinese stimulus premature with the West ganging up politically at least if not economic "sanctions" indirectly to make their stimulus probably a bit more focused instead of wholesale. If their export markets are still in hibernation, stimulus will only trigger a glut of supply with little demand. In similar fashion, Feds can only nail the cost of capital down to Zero, it can't print both jobs or and solvency if there is economic malaise.
Are risk markets getting ahead of themselves? Maybe someone can write a thesis on Snap Back Economics? The recession unless manufactured by a pandemic event can just flip back to Q1 2020 is what the equity market FOMO thinks? They could be right in the same mindset RE will continue to BOOM in a recession where TINA means passive investments is a no brainer.
Gold sector weakness under the current circumstances where banks, industrials and bond proxies are still looking for a recovery of valuation is the difference between the option of profit taking or holding through ST weakness un-afforded to the other sector participants except Healthcare and BNPL. The latter is an interesting one, I completely missed the weakness blood buying thinking that it could take longer to recover being more a millennial plaything.
At the height of the crash in March, I gave away a very handsome gains in gold sector and didn't want to average down opportunity. So in hindsight playing the swing would easily double the gains in the buy weakness sell strength.
What is the new producer? Know anything about CMM/CHN?
