Friday Recap (5/3/2024)

AU: $2301 ($2337 - Last Week Spot)
AG: $26.52 ($27.17)
HUI: 260 (269)
DXY: 105 (106)
S&P: 5127 (5099)
10-Yr: 4.5% (4.6%)
Oil: $78 ($83)

First, let's look at this week's numbers. Gold was down $36, and silver was down 65 cents. Overall, I'll take it. Gold continues to remain strong. I do think gold is heading sub $2200, with a current downward bias. That's ugly, and the reason the miners stunk this week and went back to 260 HUI. That's a terrible level. I posted this (see below) on X this week, which is my HUI buy strategy. We are still in the buy opportunity zone. Take advantage of it. We only have a few more months before we breech 300 for the final time. 

> 300: Cheap stocks are rapidly disappearing.
> 275: Last chance for cheap stocks.
> 250 and < 275: Still opportunities for cheap stocks.
< 250: A good time to look for cheap stocks.
< 225: Buy zone.
< 200: Load the truck.

The S&P rose back above 5100. That was disappointing. I was hoping for sub-5000, but I realized a rally was still a possibility this week. Wall Street remains Uber-bullish that the Fed can control inflation and keep the economy growing. They are on hopium, which will become apparent soon. The train that is the economy is about to fall off its tracks.

Employment was down this week, and GDP is now under 2%. The economy is slowing, and inflation is not going away. Plus, the US Treasury said they will borrow $850B in Q3. That is $280B a month, beginning in July. How many months do you think they can borrow $200B to $300B a month before it blows up? Got Popcorn?

I remain bearish the economy and bullish gold. I expect a cycle low for gold to arrive soon, somewhere around $2100. My target is $2000 to $2200, and anything above $2060 will suffice to reignite a new run to an ATH. Once gold bounces, I think we will have a John Tuld moment.