Precious metals had a good week last week, and the end of the corrective period from August 2020 MAY be coming to an end. As per previous posts - closer in look - double bottom - we have re-entered the wedge - momentum is good and we are coming out of the top of the bullish wedge already. Ideally we should allow a couple more trading days to make sure this holds.....and the price action today so far is looking positive. In the short term exposure should be careful, but some fresh/aggressive money may want to start building long positions (not too much). We then want to see the stocks pick up leadership - if you look at NEM and ABX which is where the big money allocators will go to first, they are close to breaking out of bullish flags - again not in the bag yet, but the large caps should lead the small caps....initially. DXY is bouncing down from the channel (see previous post) which is supportive. Any positioning at the moment should be conservative - the very bullish positioning will only take place when the flags on the stocks and GDXJ/GDX have broken north. We want to see the stocks picking up leadership of the underlying metals prices. Cautiously bullish now, but low on the risk scale.
I agree, I see some saying bearish which could be, but I feel slightly on the bullish side since I feel that the same people who buy Bitcoin are also the same type of people who would buy gold since essentially bitcoin is just another form of loss of trust in the "greenback" and if what has happened to bitcoin in the past month or two is any indication, we may very well see gold soon to follow bitcoin's bullish run
Bull-ION
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@David_Bro, Yes agree - however gold is slightly different as most institutional investors cannot yet buy BTC, so institutions and Central Banks are the most important buyers of precious metals, and that is where the big weight/momentum will come from. Investors should not look at BTC and Gold being in conflict - they are complementary to each other as you recognise - they are in conflict with cash and bonds and if one is worried about inflation, then neither cash or bonds is a good place to be - it is these investors who need to move to the precious metals and where they can they should allocate a smaller percentage to BTC dependent on risk tolerance. Time will tell..