Tech Stocks’ and Bitcoin’s Message for Gold Investors

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Market Overview Analysis by Sunshine Profits (Przemyslaw Radomski, CFA) covering: XAU/USD, XAG/USD, Gold Futures, Silver Futures. Read Sunshine Profits (Przemyslaw Radomski, CFA)'s latest article on Investing.com

More than it seems at the first sight. In particular, values of mining stocks and tech stocks moved in a very specific way in the past, and since the current situation appears to be very similar to what we saw over two decades ago, it’s time to pay attention.just clearly invalidated its breakout above the 2021 highs. This is a huge deal, as tech stocks were the most popular and leading ones during the current rally.

This is important for us, precious metals investors and traders, because of the specific link between tech stocks and mining stocks. In this case, the previous low is at about 10,000, so it looks like we’re about to see miners fall in a MAJOR way. World stocks moved to their all-time high, which already worked as the ultimate resistance that stopped the rally, not just in stocks, but also in the miners .

Interestingly, this is the time when people are expecting bitcoin’s halving to trigger a rally as that’s what’s been taking place in each case that it happened. With rallying USD and declining… Stocks, bitcoin, and many other assets will gold, silver, and mining stocks really hold ground? The history and analogies to 2008 and 2020 suggest otherwise. Precious metals and miners are likely to slide along with stocks as the USD rallies, at least initially . Then, as stocks continue to move lower, PMs and miners are likely to start a massive rally.

 

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