I was heartened by gold’s price action over the last three days seen in the price chart from Kitco below. From a high near $592 on the 23rd, it dropped nearly $19 to a low near $574 on the 24th. It then almost recovered all the way back to $592 today (25th). Gold stocks, as represented by the HUI, managed gains during this turmoil in the physical market, culminating in today’s 3% move to 316.13. This speaks loudly of some persistent buying in PM stocks.
The PM correction from the May highs has been quite painful. The “throw-over” move at HUI=369 got many people, myself included, I’m apprehensive about calling a bottom. Indeed, I’ve been fully invested in PMs and determined to ride out the rest of this correction. There is a cluster of fibonacci retracement levels and moving averages in the 320’s. Since the HUI is nowhere near oversold, it needs to get over those levels to show this rally has legs.
This is not investment advice, all usual disclaimers apply.