Gold Pulls Back To Support
Barry Dawes of Martin Place Securities explains his take on the current state of the gold market, and shares some gold stocks he believes are currently very cheap.
Gold has pulled back to support. Gold stocks are holding OK.
Key Points
Gold
Back to supportGold Stocks
Pull back to supportASX Gold Stocks
New 45-month high this week.MPS universe of 25 producers on very low valuationsASX XGD about to break downtrend vs A$ goldGold has been weaker over the past few days and has pulled back to support. The technicals are holding together, and this seems to be a normal pull back, but there are some strange actions in the marketplace.
Bonds continuing to decline in yield and we should expect to hear calls for the Fed to cut. As always, the Fed will follow the market not lead it. Take a look at the 5-year bond, which appears to be ready to come much lower.
Gold stocks have had a good run and are now pulling back into support. The local market for gold stocks made a new 45-month high and is just consolidating. Take a look at those PE ratios and earnings yields for the 25 companies in the MPs universe.
The sector is generating a very large amount of cash. Watch the quarterlies.
Gold
Almost $100 weaker over the past week despite making a new all-time high.
Gold dropped to the uptrend line here.
And still held the parabola.
Gold Stocks
Pulled back to 145 major long-term support
This ratio is a critical feature of the gold sector.
The very big turn is coming
ASX Gold Sector
Very close to breaking this 16-year downtrend of ASX Gold Index versus AU$ gold.
Some very cheap gold stock here.
Head the markets, not the commentators.
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