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Should we buy ongoing weakness in gold stocks?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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Question asked

Should we buy ongoing weakness in gold stocks?

Hi James

You have your view on gold stock back in June, I just want to ask for your review of this with stocks keep dropping, is that a good time to buy to average out or do you see this getting worse?
Thank you
Tony

Answer

Hi Tony,

We believe gold stocks are setting themselves up nicely for a bounce into 2023 but further weakness wouldn’t surprise until a “blow-off top” looks to have been established by the $US.

At this stage MM is more focused on where to exit our exposure into strength as opposed to where we should average i.e. we have no interest in throwing good money after bad into a sector that has simply failed to perform!

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Gold Spot ($US/oz) Weekly Chart
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