SX Gold & Metals Advisor | June 8, 2021
A “Pause That Refreshes” for Most Metals
Gold and silver prices dipped last week in the face of encouraging U.S. economic data and a rally in the U.S. dollar index. The dips in both metals found support at nearby moving averages, however, to keep the main uptrends intact.
Indeed, most major precious and base metals have experienced some degree of weakness or consolidation in recent days. For the most part, the pullbacks were needed to refresh the market and flush out the weak hands and other latecomers who belatedly jumped into the market after the strong rallies in April and May.
I’ll make the case here that while some additional near-term weakness is possible, the fundamentals underlying the broad-based metals bull market remain intact.
We’ll also look at a top rare earths miner which is undergoing a turnaround and could be a top performer this year based on rising demand for a little-known mineral which is critical to the red-hot electric vehicle market.