The Gold Price is Taking It All in Stride

The gold price is fully intact, technically, taking recent market volatility in stride.

Gold is riding the 50 day moving average after working off overbought readings, comfortably maintaining its uptrends on all important time frames (I don’t consider in-week, and especially in-day stuff as particularly important). Daily through monthly? The gold price is trending up in the bull market that began in 2019 and began its next leg in February of this year.

As is often the case, the pressure on gold stocks has come with gold trouncing silver, which implies global asset market pressure (interestingly, this time without the accompaniment of USD). We do have our support targets for the nominal silver price, however, and if this metal re-takes leadership to its daddy, things will get bullish for the gold stock sector, and many other beaten down parts of the macro should find some relief.

Not surprisingly, the Gold/Copper ratio has been even stronger as the herds consume the lagging July Payrolls report and get a clue on the coming recession.

None of this is particularly good signaling for commodities and commodity producers. If the current backdrop remains dominant, eventually the gold stock sector will relieve itself of the inflationists that bought gold stocks as some sort of inflation play routinely since 2003.

We are in a process folks, and that process is of changing the macro to one that sees the gold mining sector as unique, to the bewilderment of the many who touted and got burned by the miners against an improper macro for 20 years. Also watch the HUI/Gold ratio, if you catch my drift.

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