April 3, 2025 (Gold Market Wire) - For a while there, as equities were rolling over, we were wondering why Gold held up so well. Was the proverbial Black Swan appearing? Could it be that Precious Metals were going to escape the wrath of the sell-off? Was this going to be the outlier, where the world sold off and Gold stayed 'green'?

No. It wasn't.

Still given the events of the past few weeks - Gold has done admirably. The ratio of Gold to S+P 500 is showing that Gold is the place to be, and can be used to buy equities as the blow out progresses towards capitulation. But when the margin man calls - with equities down 3.5% and oil off 5% on the day... everything has to be sold. Books have to be flattened during the beat down...and leveraged Gold positions are no exception to that rule.

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Of course, what remains of great interest to us is that the USD is being hit hard, while Gold sells-off. For years we have been banging on about Gold and the US Dollar moving together...and here we are. {We'd be remiss, however, if we said we may be starting to become uncomfortable with that thesis - after more than a decade.}

To the medium term outlook, the sell off in Gold looks great to us. Some downside action is sorely needed. Any more upside would have us sweating that we'd have to cut core positions by half. As it stands now, we are staying with all of the core - and even standing with a small long position on the trading side. This could take a couple of weeks - or a couple of months...or even more. But today's sell off puts the $4,000 mark sharply in the sights - the way it wouldn't be, if we were trading today at $3,500.

The Gold bull continues...it's just stepped out for something to eat, and may munch on crude oil futures that are being massacred... prior to a war with Iran that looks scheduled for May.

...it just gets curiouser and curiouser.