Daily Gold Market Report

No DGMR Wednesday through Friday. Back Monday. Below is yesterday’s report.

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Gold’s reaction muted on this morning’s drop in headline inflation rate
Hickey says ‘gold does best when stocks are going down’

(USAGOLD – 6/13/2023) – Gold’s reaction to this morning’s drop in the headline inflation rate has been muted thus far. It is up $2 at $1962. Silver is down 2¢ at $24.10. The early reaction to major data releases is not always the real reaction. We should have a clearer indication of where we are headed by the end of today’s trading session. Short-term considerations aside, High Tech Strategist’s Fred Hickey believes that conditions are “perfect” for gold to go to record highs and that it will be propelled by a major correction in the over-valued stock market.

“Historically,” he says, “gold had two big bull markets prior to the current one. The first was in the 1970s. Importantly, gold would go up when the stock market went down. At that time, the price went up 73% in 1973, and another 60% in 1974 during that severe two-year stock bear market. The other big bull market was in the 2000s which was a lost decade for stocks. So again: gold does best when stocks are going down. That’s not the case right now, because the market is being held up by this FOMO move into these very dangerous big cap names, but that will eventually end.” [Source: the market NZZ]

Gold and stocks 1973-1974

Chart courtesy of TradingView.com • • • Click to enlarge