After a vicious selloff precious metals have stabilized. Its not a surprise given the breadth and sentiment extremes we noted and had predicted earlier.
Monday’s decline in the gold stocks has moved the sector into oversold territory, another day or two of a similar decline would likely put the various breadth indicators into extremely oversold territory.
The decline in the US$ index in 2017 has been relentless. From a high of nearly 104 at the end of 2016, the US$ index has steadily declined to as low as 93.00.
