Nobody wants your rocks

I’ve been bearish gold ever since SGDJ (Junior Gold Miners ETF) made a failed breakout in early Jan. It’s currently breaking down again, this time from the bottom of its 8-month range.

This comes right after Gold failed to hold critical support on the monthly chart last month.

Several gold mining stocks ran into multi-decade channel resistance last summer:

And it’s the same thing for silver mining stocks, except they hit major resistance last month:

Meanwhile, the Copper:Gold Ratio is making a 10-year breakout.

Of course, all this is related to the inflation trade that I’ve been talking about (see here, and more recently here).

Brian G @alphacharts

Today's (and the past several months') action might confuse many but it's perfectly logical: - Interest rates up (economic growth) - Thus, bonds down - Thus, gold down (tied to real interest rates) - Thus, growth:value down (tied to discount rate in DCF)

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Important Disclaimer: This blog is for educational purposes only. I am not a financial advisor and nothing I post is investment advice. The securities I discuss are considered highly risky so do your own due diligence.