With the US dollar trading lower once again, this is really good news for gold, silver and the mining shares!
Good news for miners
February 15 (King World News) – From Jason Goepfert at SentimenTrader: “The HUI Gold Bugs index was at a 52-week low three days ago, and has since jumped more than 3% on two of the sessions since. That has happened 7 other times in the 23-year history of the index, leading to gains over the next two weeks 6 times averaging a hefty 7.1%, with an average reward of nearly 14%…
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Goepfert continues: “Sentiment on gold is back to neutral and there isn’t anything particularly interesting there. The recent jump in gold miners has more of a positive spin, at least shorter-term.
King World News note: Here is a quick look at the money that is beginning to flow into both the GDX and GDXJ Mining ETFs (see charts below).
Money Flowing Into GDX Mining ETF!
Money Also Flowing Into GDXJ!
Also of importance…
From Peter Boockvar: On the “building material price increases” concern, dating back to 1986, lumber prices have never been this high (see chart below).
Lumber Prices Have Skyrocketed!
I’ve been arguing for months that we are on the cusp of a cyclical upturn in inflation and the data further confirms my belief. The rise in commodity prices, weaker dollar, supply chain pressures (rising transportation costs in particular) and growing labor costs are the culprits. The 5 yr implied inflation rate is up another 1 bp after a large 8.5 bp rise yesterday and its now at the highest level in 11 months at 2.05%. The 10 yr implied rate is at 2.12%, up 6 bps over the past 2 days. Well, the Fed is certainly getting what it wants, the problem is the interest rate construct is still not prepared for it.
Separately, I want to include this chart of European High Yield which at its low in November was yielding 1.90%, an epic bubble level. Things have changed rather quickly since and the yield is still only 3.11%.
European Interest Rates Are Also Spiking!
King World News note: The bottom line is that inflation is surging and this is extremely bullish medium- to long-term for gold, silver and the high-quality companies that mine the metals.
The charts and commentary above are from SentimenTrader. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
***KWN has released the timely KWN audio interview with Dr. Stephen Leeb and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
ALSO JUST RELEASED: Gerald Celente Just Issued This Major Trend Forecast For Gold & Stocks CLICK HERE TO READ.
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