as mentioned in And strong fundamentals + negative sentiment is a powerful combination in terms of making sizable returns.
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For gold stocks, the fundamentals deteriorated slightly in the last month or two, then negative sentiment kicked in and did the dirty work.
But there are some who don’t believe that fundamentals drive the gold price, rather they think sentiment ultimately determines where the precious metal trades.
It is extremely unusual for the money stock to surge by that amount in such a short time.
Recent Gold Pullback Looks Like A Tasty Entry – SPDR Gold Trust ETF (NYSEARCA:GLD)
as informed in At some points, the price movements of gold miners such as the VanEck Junior Gold Miners (NYSEARCA:GDXJ) have been good indicators about where the underlying gold price will move.
Today, we also saw the ECB keep its zero interest rate policy (ZIRP) while also keeping its QE unchecked.
In fact, the gold price after the December rate hike in 2015 and the December hike in 2016 appreciated significantly in both cases.
Interest RatesOf course, the most important factor weighing on the recent price depression for gold is due to the increased expectations of an interest rate hike.
In the face of such bearish sentiment, I expect its continued decline in the short-term, and look for a great buying opportunity when the gold price bottoms out.
Gold Miners’ Q4’16 Fundamentals Quite Strong – VanEck Vectors Gold Miners ETF (NYSEARCA:GDX)
as informed in The gold miners’ stocks have corrected hard in recent weeks, hammered by a gold pullback driven by soaring Fed-rate-hike odds.
But the gold miners’ underlying operating fundamentals remain quite strong, proving the recent selling was purely psychological.
The major gold miners’ fundamentals in just-reported Q4’16 remained quite strong and bullish despite gold’s sharp post-election plunge.
The gold miners’ Q4’16 results collectively offer an amazing fundamental snapshot of this now-battered contrarian sector.
The bottom line is the major gold miners’ fundamentals in just-reported Q4’16 remained quite strong and bullish despite gold’s sharp post-election plunge.
collected by :Irax John