The majority of fund managers have no investments in gold and gold stocks and have no interest in what happens to gold. In addition for passive investment funds which I have read make up a huge 50% of the stock market, investing in gold runs against their business model ie they want people to invest in index funds only so the index funds rally against investing in gold and gold stocks.
This is one reason why gold stocks are very undervalued and even more so given the recent gold price increase.
If fund managers were to become interested in gold and gold stocks, even a small amount of generalist fund managers assets in gold or gold stocks eg 1-2% would result in a big upward movement in gold and gold stocks prices.
I noticed that Bitcoin has fallen from $71k on Friday to the low $60’s seems to be in a range of $62k to $64k. Rather that a safe asset the price of Bitcoin seems to be strongly correlated to the price of tech stocks and the NASDAQ stock market index (see images below note how it reached a high and low when NASDAQ reached a high/low). Will we see a significant reduction in tech stocks this week especially as Bitcoin is now down circa 10% from its high on Friday US time? With inflation staying high and interest rates cuts seemingly off the table for the next 6 months and maybe even for 2024, is possible we may see significant fall, what some people call another tech bubble?
What will gold do if there is a significant ie 10% or more in the stock market? Could POG initially fall then rise or it just may go up more and not fall initially? I noticed that the gold back crypto PAX has increased over the weekend the reverse of Bitcoin - it’s up about 3%-4% above Friday spot gold price while Bitcoin is down circa 10%.
