Gold stock sentiment indicator.This week has seen a subtle change in the market.
I believe the XJO has gone into a very defensive mode.
Yesterday, apart from gold producers the only sector in the green was staples, with Telco’s the best of the rest.
Keep an eye on the indices for an idea of the overall market sentiment.
This defensive shift is seen with junior gold stocks selling off late in the day, highlighting a risk-off market.
Not overly concerned about the gold sector given how easily POG sliced through the US$1,800 level.
If gold fails to hold $1,800 then sentiment could dip sharply lower.
Even more encouraging was the 2.5% rise in the silver spot price. What a move.
The AUD is close to 70c again, probably on the back of rising commodity prices and expectation of an improving economy.
I am not convinced on the economic front. Sentiment will have taken a hit with COVID shutdowns and some underlying data is not very rosy.
The sell-off in juniors is reflected in the sentiment indicator which continues to fall though nothing too dramatic.
Here it is.
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