GOLD 0.51% $1,391.7 gold futures

I never understand the actual relationship of the HUI/DUST...

  1. 40,611 Posts.
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    I never understand the actual relationship of the HUI/DUST against the gold price. I suppose there isn't confirmation (confidence) from the HUI on the current discount from a rising gold price so for whatever reason (no gonna find something that is impossible to know) gold stocks not rising in sympathy to gold price.

    I always recall Trump's victory acceptance speech on the night of the election that Us economy is on the next phase of the the growth. It was just a strong gut feel that jumped at me. I am going to take the recent divergence of the gold price against the logic that strong USD/rising bond yields = weak gold price as the early signs that gold could be playing a part in 'inflation hedge' rather than the crazy doom talk that has been suggested by the herd here.

    The market is not into the confirmation but the build up as each key puzzle fits into the big picture. By the time the big tax cuts/infrastructure spends gets going, the horse would have bolted. In true spirit of anticipation, Yellen's first rate rise was anticipated for 1 year and the second was 6 months. they were signs that it was a credible event occurring against the back drop of junk fundamentals from Schiff/Rickards et al that US economy cannot afford more expensive money ( additional debt) = market crash, USD crash and dirty kitchen sink projections of the future.

    No harm getting leveraged exposure to gold stocks which I consider as any sector/commodity that has its ups and downs volatility. Beside the discovery of the elixir to life longevity, everything else suffers form supply/demand pressures.
 
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