...And the reason why I said what I said in my previous post is
Correlations do not always work. Sometimes they do sometimes they don't, but fickle as.
Upon Fed announcement of bringing forward rate rise to 2023, the US 10yr bond yield rose from under 1.5pc to 1.58pc but since then has retraced back to 1.51pc .
Yet the gold price which ought to be a beneficiary of lower 10yr yields got slammed in a biggest one day fall this year.
My guess is that USD shorters got caught with their pants down upon the surprise Fed announcement which resulted in a large USD short squeeze, causing the dollar to spike sharply and causing much damage to the Gold price as well as AUD which is now on the brink of 75c.
Another explanation could be the quad witching option expiration, but don't ask me to explain that.
But in all likely this is all TRANSITORY if I could use that favourite Fed speak word.
But still enough to recollect what Radomski had been cautioning us all this well.
I am staying the course with Gold discovery Microcaps because I am confident Gold price in 2022 and beyond will be moving much higher from here. And for Microcaps, the future Gold price is the one that is only relevant.
