Gold is forging into new nominal record territory, which will attract investors. Gold miners’ stocks are cheap fundamentally with earnings exploding as gold powers higher.
Although Gold is hovering around all-time highs, the precious metals sector will remain in a secular bear market until the stock market and the economy crack.
The US government (already a debt, fiat, and war-oriented mess) will now borrow even more fiat and use it for long-term management of the Suez shipping traffic.
The recent break low is $2029.20. You have the pattern of higher lows, and higher highs. So until that number is taken out, I'm bullish on gold. The trend is up.
I think a “reasonable” target for the rally into 2024 would be the 4883-5163SPX region. And as the market takes shape in the coming weeks, we can probably narrow that target down a bit.
In the gold market for the weekly chart of closes, you can see how the market is staying up. And notice this market has been staying up on a weekly basis ever since September.
Gold has traded long enough over $2000 to justify as buy on crash strategy. 2023 will be first of the many more years in which spot gold will close over $2000.
Gold is headed for a weekly gain in a market dominated by the Federal Reserve’s strongest indications yet that it will pivot to easing monetary policy next year.
