Gold Mining Shares Outperform As Gold Finds Support

The following quote from the most recent RBC “Commodity Comment” sums up the current gold market environment quite well:

“The proliferation of unknowns, inherently difficult to hedge, remains a key reason why we recommend gold allocations and underpins our positive view through year end despite a still strong dollar and a rising rate environment.”

The fact that gold analysts can remain bullish on the yellow metal while acknowledging that we are in a strong dollar and rising rate environment is noteworthy in itself. The possibility that we are NOT in a rising rate environment (yields may have topped last month) and that the US dollar may have seen its high for quite some time offer an especially bullish bonus.

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