Follow-up article on gold and gold mining stocks.
In my previous article about this subject "The divergence between the rising gold price and declining gold stock valuations will end soon", I predicted that the gold mining stocks were about to make up for lagging the rising gold spot price.
We are now seeing gold continuously breaking the strong $2,000 resistance, as well as movement in the gold mining stocks. The cryptocurrency markets that profit from similar macros such as growing global de-dollarization, the staggering $33 trillion US debt, the US-China cold war, the US (NATO)-Russia war in Ukraine, the escalating Israelian genocide of Palestinians, and Xi Jinping's success in the Middle East, have already rallied with Bitcoin nearing $40,000.
It is no surprise that gold, which lags Bitcoin in 2023, is showing strong signs of life again, as it passed the strong resistance at $2000, holding it back from breaking out. At the time of my prior article, the gold price hit $2,006.18, today it broke further trough and hit $2,048.05. And today, finally, the mining stocks climbed, indicating that a rally might be imminent.
Despite gold breaking out, I do expect a fierce correction in the crypto markets, which fueled by Spot Bitcoin ETF expectations, rallied towards new yearly highs. Especially the altcoin market has been driven higher by this ETF-FOMO, and if Gary Gensler, SEC Chair, decides to delay the decision again, we can expect a sharp correction that will spook all the new investors out of the market. Therefore, I would argue it is not the moment to Fomo into any cryptocurrencies right now. Wait and let others take their losses when this thing corrects, before stepping in again at much lower altcoin valuations.