Over the past two weeks, the precious metals complex has retested its Brexit breakout and rebounded back to the July highs.
In a bull market corrections can end quickly. One minute you are projecting another 5-10% downside and the next, the market has left lower prices in the dust.
My favorite indicator for real time gold demand is the amount of gold in the SPDR Gold Trust (ETF) and its fluctuations over time.
Gold broke-out last week on Brexit while Silver waited a week to join the party. The miners, meanwhile cleared 2014 resistance today.
Weeks ago precious metals began a correction amid overbought conditions (in the miners) and very bullish sentiment in the metals.
The gold stocks started to correct this week as large caps were off 13% at Thursday’s low.