Gold didn’t offer a hedge against stock market turmoil. Instead, it shared with equities the fears against a more hawkish Fed and moved alongside stocks.
Gold may stay under pressure, especially that political uncertainty related to the Italian national election is likely to weigh on the euro in the near term.
The price of no asset can move up or down in a straight line, so why should mining stocks be any different? When will the turnaround take place? It depends.
The only thing that could make it more bullish is if the USD reversed under oversold conditions and close to the cyclical turning point. Oh wait. It did.
