Wow. CiovaccoCapital have added some physical Gold to their portfolio for the first time.
Listen to their weekly podcast at 18:35 where they admit this.
CiovaccoCapital are a well thought of mainstream Capital manager. This means the third leg of Gold buying, standard long investors, is well underway. GLD confirms this with holdings now at 52 week highs.
http://www.spdrgoldshares.com/usa/historical-data/Total Spec Longs are the second leg of Gold buying, and they've just set new 52 week highs.
Total Spec Shorts were the first leg. Their now close to yearly lows, having covered their shorts to within 2% of 52 week lows.
21:15 into the podcast Ciovacco discusses the Stocks vs Gold chart. Gold doing well is starting to make the Stock Market look relatively risky, same with Long term Bonds vs the Stock Market. Especially not good for the Stock Market after the FED just lowered rates.
Gold Stock's Autumn Rally is covered in Zeal's weekly article:
http://www.zealllc.com/2019/gsautral4.htmThe FED has just announced that QT is ending early, which is good for Gold.
Augusts, which is when that Asian harvest buying kicks into full swing, are also good for Gold.
Speculators and investors in Gold miners need to be fully deployed before Augusts, just like in gold.
"Gold stocks will follow and leverage gold in the next couple months, whether the metal retreats or keeps rallying. Again gold faces a major selloff if gold-futures selling starts snowballing, rapidly unwinding the speculators’ excessively-bullish bets. But if investors entranced by the alluring new-high psychology keep buying, gold will continue powering higher. Gold stocks’ near-term fortunes depend on gold investment demand.
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The usual summer doldrums failed to materialize as gold surged on the Fed pivoting dovish.
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Strong momentum tends to build on itself.
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This year’s autumn-rally setup is very unusual, as gold skipped its summer-doldrums slump after breaking out to major new bull-market highs. That was driven by massive gold-futures buying, leaving speculators’ positioning quite bearish. But rare new-high psychology is a powerful motivating force for investors to buy. Sustained capital inflows from them could easily overpower or retard gold-futures selling for months."
Other thing I notice is the AUD has been down against the USD 11 days in a row.
Great time to be invested in AUD Gold Miners.
