26Oct3:31 pmEST

This is Really Going to Hurt

You would never know that gold's multi-year, zoomed out chart looks as constructively as it does given how exasperated gold bugs appear to be of late--But that's just it: Sentiment is so washed out in the precious complex that even legends like Paul Tudor Jones have essentially shrugged the asset class off in favor of crypto. To be clear, I can envision a world where both crypto and gold/silver/miners are able to thrive in harmony. But the steep history of gold coupled with its intrinsic value renders it extremely valuable over time, especially compared to the relatively new flavor of the decade that crypto represents. 

As a result of such a sentiment washing, where aversion to taking on precious sector risk seems to be the norm for even most steadfast gold bugs (who are in "I'll believe when I see it" mode right now) we get days like today where it appears all is lost and we are about to roll back over. 

While that may happen, objectively we have yet another session of late today which has become increasingly common: Dip-buyers showed the intestinal fortitude to step into a weak morning. And now we have gold and silver, alongside many miners (which have a slew of earnings coming up in the next few weeks) are closing well off the lows headed into the bell today. 

It is never easy to try to identify a major inflection point, in this case the precious complex pullback since the summer 2020. But the longer-term trend is still higher, which runs contrary to conventional views of gold right now in many investment circles. In other words, as tedious as the sector has been, the setup is there, if the Dollar cooperates with weakness, especially, for a new leg higher just as many have written it off. 

Suddenly, the Quiet Part of ... It's Like Baseball, Ya See


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