Yesterday I did a premium post called Golden Gap, in which I wrote:
Over the past six trading days, precious metals have managed to mount a hearty recovery, thanks to the (long-awaited) break in the U.S. dollar’s relentless climb. I would like to suggest, however, that gold – which has done an excellent job of disappointing precious metals fans for the past seven months solid – may be reaching an important resistance point in the form of that island reversal gap.
In other words, I think this might be just about “it” for now.
Silver, for example, is down 3.5% right now, so this seems to be going all right so far.
My view is that the precious metals are not going to be excused from the All Assets Going Lower situation that we’ve witnessed, and will continue to witness.
Sadly, they don’t seem to be as special as I once imagined. They’re just another luxury asset, little different than common shares in Alphabet (NASDAQ:GOOGL).
