Royalties as an alternative to shares - an interesting innovation

The best news last week was the recovery of the gold price, up about 10% to hit a 10-week high after escaping from the band around US$4,000/oz. Observers attributed the rise to the lower-than-expected inflation figures out of the US, with this suggesting interest rates don't have to go up. Other positive news is that the Bank of Korea has acquired US$355bn of gold in Q2, being its first foray into the metal for 13 years.

Last week we reported that we had hit the inflection point with many charts breaking out of downtrends. What normally happens when we see this is an initial surge of buying and share prices spike higher, but they don't just go back to previous highs in a hurry. They need to absorb selling from shareholders that had been trapped for a while, and now want to let some stock go. We should expect to see rises and consolidations as the renewed trends develop based on a more rational, optimistic psychology.

Grigor Sentiment Oscillator
Charts in Uptrend: 29% (26%)
Charts in Downtrend: 43% (48%)
 

 WeeklyComm15August2026.pdf