Aguia: Operating Licence Granted, Now Starting Production

Remember when, a few months ago, I questioned whether the move in the gold price was a blowout scenario. It looked like it at the time and subsequent movements lower have confirmed that this was indeed a blowout. It marked the end of a chapter but not the end of the story. The heat has come out of the gold and silver markets and the same with precious metals equities, but they will return to favour at some point. The best way to pick the bottom, and therefore the turnaround, will be by following the charts (which of course will be influenced by real world events).

The Sentiment Oscillator correctly called the correction in the market back in early February. Normally, you can expect a correction to last a few weeks and then there begins a period of bargain hunting for the next wave upwards. However, it is different here due to the imposition of the Iran War.

It was a stinker last week as many stocks moved lower. It started to look more like a bear market than a correction. The market has lost momentum while we have been waiting to see what Trump does next. Whereas previously the punters would have been looking for the time to buy on the dip, they have hesitated and are now becoming increasingly disengaged. That means they may take longer to react when the market does start to turn. That behaviour is symptomatic of a bear market rather than a short term correction.

Nevertheless, in the real world, it was a good news week for Aguia last week and we comment on that below. We also have a further look at the HPA stocks to give a bit more insight.
 

 WeeklyComm23May2026final.pdf