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Talked to a few people who are well versed in thedollar, gold, interest rates, etc. space.

What has been bothering me for months are these strong intraday fluctuationsin gold. In principle, the POG should already be above USD/oz 2000. But it isnot. The reasons for this:

We see weaker USD, but slightly steeper US yieldcurve. Also, many people selling gold to buy equities.

Indeed, the consolidation in gold in the late summer of 2020 was overdue. However, the duration is now frustrating for all market participants. Sentiment is now clearly negative and the performance of mining stocks has done the rest. Many investors are now throwing in the towel. But this is exactly the reaction that has often been seen at the bottom of precious metals in the past.

Bottom line – this is a brief correction to the trend,but when the Fed announces a yield curve control policy, gold will benefit. Iexpect that we will see an aggressive rise once the Fed announces this. Then we are talking of a possible 2nd stimulus in USA in summer - which means the the pressure on USD will continue.

My conservative POG target for 2021 is at USD/oz 2300.

Withregard to gold producers, the following can be said: From a fundamental pointof view, now is a good time to invest in the producers' shares instead of gold. We are at the beginning of the cycle. Companies have become more cautious after the mistakes of the last few years. Valuations are attractive, both historically and compared to therest of the stock market. Many companies have a free cash flow yield of between 10 and 20% at current gold prices. Producers have done their homework, cleaned up balance sheets and written off projects, and got costs under control. Margins are risingand debt is low. Dividends are being paid again and shares are being bought back. Conclusion: the sector overall never has been seen so healthy.

I think it is still a good idea to buy the dips - if there are any.

Besides that...DYOR.