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Gold drifts

The irony of this is that U$1,250/oz or U$1,260/oz is a pretty decent number for gold, any producer mining company worth its salt will make money at this level* and the decent projects will show robust margins**. But until and unless gold stops drifting at its current level, both the metal and its derivative plays in the precious metals miners sector will remain unattractive to generalist money.

For what it's worth, I think U$1,270/oz is a trigger level (and have said as much in the last couple of weeks in the Weekly). But the chart above has a big elephant in the room, the real one is $1,300. K.I.S.S.

*Which means a lot of crappy companies won't
**In theory at least. They'll all promise you their project "works" at U$1,200/oz gold. Most of them are lying