As a group, gold royalty streaming companies reacted negatively to the drop in gold price on February 13, 2024. This movement was triggered by US CPI for February printing slightly higher than expected by consensus, on the index and also MoM and YoY readings.
Reaction was an immediate spike in
DXY
and commensurate selloff in
EURUSD
. This dragged risk assets down, with equities markets getting hit.
GOLD
also lost more than 1% in lockstep reaction.
The opportunity here is in the unwind of yesterday's outsized movement amongst the gold royalty streaming companies as a group. While some have performed better than others over the past year, they were all punished on this move. Typical drawdown was 10% on the day.
For consideration: A) a short term buy of one of these names and holding to pre-CPI price level, or B) a longer term entry for those with a bullish view on gold and appetite for leveraged exposure and desire for dividend income.
Reaction was an immediate spike in
DXY
and commensurate selloff in
EURUSD
. This dragged risk assets down, with equities markets getting hit.
GOLD
also lost more than 1% in lockstep reaction. The opportunity here is in the unwind of yesterday's outsized movement amongst the gold royalty streaming companies as a group. While some have performed better than others over the past year, they were all punished on this move. Typical drawdown was 10% on the day.
For consideration: A) a short term buy of one of these names and holding to pre-CPI price level, or B) a longer term entry for those with a bullish view on gold and appetite for leveraged exposure and desire for dividend income.