Fitch Ratings indicates that gold miners have strong credit outlooks supported by balanced capital deployment, healthy balance sheets, and stable-to-improving mining profiles.
For the second week in a row gold fell, losing this time 2.0%. Silver was worse, down 3.8%. However, both remain up 30%+ on the year. The trend remains solidly to the upside.
We still expect higher prices as wave !iii! continues to develop. After wave !iii! ends we expect a wave !iv! correction that retraces between 23.6 to 38.2% of the entire wave !iii! rally. Trading Recommendation: Long gold. Use puts as stops.
In fairly short order (no pun intended, especially as shorting Gold is a bad idea), the price shall break below the line, the rule of thumb then being to expect still lower levels.
