The last PMs sector update I had on the blog
was all the way back in early April
of this year. In the article, I discussed Gold’s outperformance in Q1
of 2014 and the large number of bullish contracts that have built up, as
hedge funds started herding with expectation of even higher prices
(something that I disagreed with).
I do not usually do prices targets, but I did state that Gold could
drop lower in coming months and quarters. Whether this happens before
the bear market ends remains to be seen, but one thing is now certain –
PMs selling pressure has eased… for now.
Chart 1: US equities are at record while PMs sector is near 3 year lows
Source: Short Side of Long
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