Everything looks good except for gold

Everything looks good except for gold

Leading gold stocks were sold off by institutions as the gold price dropped below US$1,800/oz again.. We are now at the stage of the cycle that even the true believers are starting to reduce their gold positions, though somewhat belatedly. There is too much money being made elsewhere, so sitting and watching the gold stocks fall further doesn’t have much merit. It would be Sod’s Law if gold started to rebound strongly after we exited our gold positions.

While gold has been weak the silver price has been performing much better. Friday’s close of US$27.17/oz is not much lower than the 2020 high of US$28.85/oz. It is still in an uptrend.

Commodities are looking good across a number of metals. Enthusiasm for copper continues to mount with its price piercing $4.00/lb last week. Nickel moved to a new high within a strong uptrend. Lead and zinc have both been strong. Of all the commodities only gold has been disappointing.