While we have been charting a constructive gold vs. commodities big picture view, we have also kept track of a disgusting gold vs. SPX big picture view as gold has been “boxed in” as it grinds around looking to close the gap from 2007. That was the kickoff to the financial crisis as the first institutions began melting down.
This cycle really has done amazing work in repairing (some, including myself would say sweeping under the rug) the damage and resetting the gold bug psyche as well. It is important to remember that gold bugs were the kings of everything back then, with their ideology unquestioned. But these are the markets and they don’t care about egos. Actually yes they do, they care about crushing inflated ones. The job appears to be in its final stages.
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