Tuesday, October 22, 2013

Trapped


Between the breakdowns in the US dollar and 10 year yields, precious metals have trapped the Johnny-come-lately and dogmatic bears and are surging higher this morning on the backs of their downtrodden miners. 

From our perspective, capitulation in the sector is now in the rear view mirror - as the relative performance between the miners and their underlying spot prices has pivoted sharply higher. 

Onwards and upwards.

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