Not so sure about seeing a pause in the gold rally. Give where...

Not so sure about seeing a pause in the gold rally.

Give where the stock and bond markets are sitting presently, I tend to think it's either about to break up or break down.

Most stock markets have failed to rally to new intermediate highs, but many are sitting slightly below resistance levels (as are junk bond markets).

If they do break through these levels, renewed optimism might return.

That said, gold's momentum is quite strong...

Up 20% off bottom in virtually all currencies. Huge reversals in GDX/HUI indexes. Broke through the 300 day moving averages for the GLD/TLT and GLD/SPX ratios...

Beyond that, the fundamentals are heavily in gold's favour, and that coupled with a strong trend reversal will have the traders now will to support this trend should the recent stock market rally falter even slightly.

I suspect we will get to find if this recent stock rally has legs or not by the end of this week.

So the onus is on stocks and bonds to start breaking through resistance levels and rallying to new highs or the negative sentiment will take hold again and take us to new low (and gold to higher highs).

Not that it matters much for MML at these SP levels... they made A$44M in the first half with a PoG of $1109 with an enterprise value of A$102M...

And the PoG is currently at $1272!

The PoG could fall $160 back to where it was and MML would still make a net profit which would pay for itself in only 15 months!