Gold Signals Inflation Trades, Financial Markets Could Be in Danger

The charts for gold and miners have been weak of late. GDX held above my support line and bounced, but I cannot fault anyone who looks at gold's performance versus other assets and says Gold is Garbage. To my eye, the outlook isn't bearish yet. Today's dip fills a gap, but GDX remains above my major support line (violet).

Gold is weak overall compared to stocks and crypto though, because real interst rates are rising. Gold fell $50 an ounce today because the 10-year yield hit a new 52-week high in morning trading. Gold would rise if inflation was outrunning interest rates. The plunging gold price is screaming that this might indeed be another rope-a-dope on the ifnlation crowd by central bankers. Fooled them in 2008, 2011, 2014, 2018, 2020 and maybe 2021...

I offer no forecast of the future, except to say I will not ignore the message gold sends me. The probability of another deflationary panic is rising. I remain bullish on gold miners over the long-term. Right now, I suspect it is closer to a bottom...but if I am wrong...global markets have been down this road many times since 2008.