Hello everyone, I am predicting a rise and very likely big fall of the gold miners. Seasonally the last 3 years the precious metals space has risen into the end of the year and peaking in early January. I do not expect any different this year with Powell recently coming out at the last FOMC meeting and saying 3 rate hikes in 2022.
But what about all the money printing and historically low real yields you say? Well that just doesn't matter to the market right now with the broader market moving higher and dancing until the music stops. Precious metals won't be making fresh 5 year highs until a substantial market selloff, and even then miners will most likely fall with the market however brief it may be. Or on the first rate hike next year if miners and metals are shorted heavily because of the Fed narrative there could be a massive short covering rally similar to what we saw in January to August of 2016. This is just my opinion not trading advice do your own DD. Good luck traders and happy holidays!
But what about all the money printing and historically low real yields you say? Well that just doesn't matter to the market right now with the broader market moving higher and dancing until the music stops. Precious metals won't be making fresh 5 year highs until a substantial market selloff, and even then miners will most likely fall with the market however brief it may be. Or on the first rate hike next year if miners and metals are shorted heavily because of the Fed narrative there could be a massive short covering rally similar to what we saw in January to August of 2016. This is just my opinion not trading advice do your own DD. Good luck traders and happy holidays!