Buy Gold and Gold stocks (modestly) for Long Term and as Insurance based on what lies ahead, and we should be less fixated with technicals. Gold may well head down to $1400/oz or may recover back to $1500/oz- and it could possibly even do the former first and the latter later - because we continue to face incredible ambiguity in a bi-polar world that constantly subject to barrage of news that may well be mere conjectures.
If I sell my gold stocks now, believing gold price would head to $1400/oz it would be unlikely for me to buy them back when it (reaches $1400) because by then I would be thinking $1300 and so on, but as we know, it is very volatile now, it can easily recover all lost ground in rapid pace if things go against expectations or we become reminded again that the economic reality is actually worse than we all have started thinking.
The gold price is one thing and while important is not be all and end all for gold producers and certainly not for gold discovery minnows. The concern is more warranted if gold price ever start getting lower than ASIC for these companies but we have today still a very healthy gold price, one is still 15% higher than back in May this year , yet gold stocks have retreated back to levels not seen since early of 2019. It meant that the market has already priced in for further gold price retreat.
