It's a bit surprising. Gold isn't doing all that badly, but the stocks are really down. In the past, this has usually been followed by a hammering of the gold price. Falling gold stocks has historically been an accurate indicator of falling gold price in the past, and will continue to be until the time it isn't. Is that time this time? I'd bet against it, because I haven't sold all mine yet. I'll let you know the moment it happens.
I think that the market is worried that gold could perform like it did last April, and there aren't enough other buyers to take up the slack.
I think that the market is worried that gold could perform like it did last April, and there aren't enough other buyers to take up the slack.
Miners performed nicely yesterday, but Gold is getting whacked this morning http://cl.ly/V0rc . Mind you that Goldman came out yesterday with another call for Gold at $1050, they had the same call back in December and gold rallied to 1400. Last year they called on lower prices and loaded up on GLD on the way down. GOFO rates are negative so that would actually suggest higher gold prices... but I guess paper games can trump physical in the short term and try to paint the chart as to get investor sentiment on the bearish side. @alexdgn
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