All I can say is that I hope we don’t see gold and XGD start behaving like in 2011. Correction/sell off in the ASX looks like it doesn’t have much left especially on the weekly. When it bounces will XGD follow the broader market? Gold hasn’t corrected, pretty much stable or slight gains since crash around 24th Feb. Looking at gold’s monthly chart how much longer will it continue up? If gold gets sold off as ASX recovers I don’t hold much hope for XGD, however if we get QE and/or similar then gold and ASX will rise in tandem with XGD outperforming both. Look what happened with QE1 back in the day, expecting a repeat in PMs and related stocks if we get it again.
Personally I think we’ll see recovery in PMs and stocks together due to monetary policy, but recovery starting from what price I have no idea. If we do get a melt up in gold stocks I will most definitely be cashing out at that point.
Quarterly reports due in April, if gold holds/rises until end of March then we may see a boost in XGD. But between then and now anything can happen. Looking forward to XGD becoming broadly correlated with gold price again, not liking this inverse-correlation that much.
