EVN $3, page-68

If the POG was competing in the Tour de France, I’m quite sure there’d be a few officials keen to have it pee in a little cup at the end of this week.

Some strong numbers to reflect upon:

• - POG $1,366.30 (importantly, above Brexit Friday’s intraday spike high)
  - Silver up 3.11%
  - Even Palladium (up 1.23%) and Platinum (up 0.78%) came to the party
  - GDX, a handy dual-listed proxy (NYSE/ASX), finished up 3.14% at $30.54
  - OGC, another dual-listed proxy (TO/ASX), finished up 0.75%
  - The HUI finished up 2.80%

BE MINDFUL OF THE WORD ‘SHOULD’
There are a lot of folks who are beginning to use the word ‘should’ quite a bit:

- “After such a strong rally, gold price should be due for a pullback”
- “Price should not be performing this well because historically we’d be in the ‘summer doldrums’ right now (northern hemisphere)”
- “Technicals show both gold and the miners clearly overbought, so there should be an imminent downturn”
- “Optimism index is too high, so investors should be in for a nasty pullback soon”

Gold could indeed pull back. But it shouldn’t be because it should.

It should have done a lot of things over the past six months, but it hasn’t. And we must remember that the very positive numbers, above, all occurred in the face of 278k NFPs (a 12-month high), new record short positions on both Gold and Silver (this week’s COT), and rallies in both the DOW (+1.4%/18,146.74) and S&P500 (+1.53%/2,129.90) to end near all-time highs.

One analyst I follow uses the HUI/Gold Ratio to demonstrate that “despite gold stocks rocketing higher this year, they still remain very low absolutely and relative to gold”.

I’d add that when something goes down 50%, it has to go up 100% to get back where it was. But when something goes down 90%, it has to go up over 990% to get back to where it was.

Sentiment, and the times, they are a-changin’.