Gold stock sentiment indicator. Goldman have joined the fray and only forecast a US$2,000 gold price this year. Bring it on. The US market surges higher on an excellent ISM read. Oh, and stimulus and yield curve control. I suggest you read this article and try to understand the fine print. Hint - price rises, labour shortages, supply disruptions. https://www.investing.com/news/economic-indicators/us-manufacturing-sector-at-threeyear-high-cost-pressures-mounting-ism-2433415 And to top it off, this one from Germany. https://www.investing.com/news/economic-indicators/german-union-ig-metall-calls-for-strikes-to-secure-4-pay-increase-2433661 All I can say is the system is seriously unbalanced. Until the system stabilises, expect wild swings across all components of the markets. . With Australia doubling bond purchases the AUD should be under further pressure. A consequence will be that Aussie gold miners will be VERY attractive to overseas investors as the AUD falls. Here is more to digest. This goes into detail about currencies, bonds, markets and PM's and the various interactions. I thoroughly recommend reading this as it spells out with far greater eloquence and lucidity anything I may dribble. It shows how bond yields can align with the direction of the gold price BUT I anticipate serious levels of yield control and bond buying to continue. https://goldseek.com/article/technical-scoop-funky-economies-stock-fuel-political-shift-zombie-companies-concerning POG is nowhere near an equivalent price relevant to money printing. The game continues. . I believe we are now seeing the capitulation endgame of this bear leg of the gold cycle. Could last for a week or two which uncannily lines up with the time frame I suggested a couple of weeks ago. Mid-Feb. Gold should follow a week or two later. Capitulations looks and tastes horrible but the Aussie market has a potential buffer. A weaker AUD. The US$1,680 to $1,700 appears to be the zone and there is strong support in this range. Gold is going further into backwardation the further it falls. There has been a decent reduction in shorts in the futures market as shown by the COT report. In the meantime, leading indicators popped straight back up to the levels (around 50%) seen on Thursday. The sentiment indicator has risen a couple of %. Here it is. .
