gold, page-128552

Gold stock sentiment indicator and macros.

Time for a review.

My recent target for US$POG is $2,703.

Today, a price target of A$4,443 was set up for Australia.

If happening concurrently, the Aussie dollar is going to 60.8c (my view, not investment advice).

The gold charts are in a healthy uptrend.

Keep in mind – nothing goes up or down in a straight line.

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You may recall past currency targets.

I also think I am correct in calling a USD dump. Still to happen.

The above methodology has been quite accurate in the past so time to consider why this might happen.

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In recessionary periods, the AUD pays the price as a commodity-based economy.

Copper already showing signs of the expected economic outlook and a world-wide recession appears imminent given China, Japan and EU economies and recent US data.

Commodities that economists think are most exposed to a downturn are oil, gas, coal, copper, silver, aluminium and iron ore.

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The current lack of investment, delivery of new mines and nationalization in mining has already created significant supply/demand imbalances in copper and silver.

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China and India are still growing.

War sucks up commodities like oil, silver, specialty materials and alloys.

Trade tariffs and embargoes distort pricing.

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The only thing I am sure of is volatility.

It is easy to see how the AUD can drop to 61c.

Not good for foreign investment in our stock market so prices can be hit, particularly when margin calls are invoked.

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I’ll let you know when sentiment appears to be bottoming.

Gold Stock Sentiment Indicator.
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