Is The Correction In The Metals Over?

Is The Correction In The Metals Over? from King World News

With gold and silver surging, the Nasdaq breaking below 7,500 and the Dow close to breaching 24,000, is the correction in the metals finally over?

Is The Correction In The Metals Over?
By Bill Fleckenstein President Of Fleckenstein Capital
July 3 (King World News) – 
The indices were sort of mixed through mid-session (the market closed at 1 p.m. Eastern today), with the S&P and Dow slightly higher and the Nasdaq similarly lower. Not that the distinction means much…

The Rockets’ Red Glare
But with about 90 minutes to go the downside fireworks began, as a Chinese court banned Micron from selling chips. (I suspect this is the form of retaliation we will see from them as trade frictions intensify, and if I were Apple I’d be worried.) After that news hit the market flipped over, led south by the Nasdaq, which lost almost 1%.

Away from stocks, green paper was a little weaker, oil was a nonevent, fixed income was higher, with the long end quite strong, and the metals recovered a decent portion of yesterday’s losses, with both gold and silver rallying about 1%. Once again, the miners were very strong.

Just Need to Check the Timing
A reasonable case can be made that the recent metals correction is over. On the other hand, I would be less than honest if I didn’t admit that I’ve thought that a couple of times already. Nonetheless, the strength of the miners has been quite impressive and, as I noted last week, this sort of action argues for higher prices.

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King World News

Interviews with market experts from around the world with a focus on precious metals.