Mining Stock Daily Florian Grummes on this Gold Consolidation and Concerns on Tax-loss Selling Ahead
Nov 6, 2025
Florian Grummes, a precious metals analyst and principal of Midas Touch Consultant, delves into the dynamics of the gold market. He discusses the recent gold rally and subsequent pullback, examining technical indicators and support levels. Grummes highlights the potential for a mid-December turnaround driven by historical seasonality and Chinese demand. He cautions about tax-loss selling pressures on mining stocks while encouraging patience for investors eyeing long-term opportunities. Expect volatility but keep an optimistic outlook for gold!
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Unprecedented Rally Led To Quick Correction
- The recent gold rally was unprecedented in Florian Grummes's 25-year view and produced a sharp, fast correction.
- Weekly charts are rolling over, so consolidation may take time before the next leg higher.
Expected Consolidation Around $4,000
- Florian sees a likely further consolidation around $4,000 with a possible leg down to ~$3,700–3,750.
- He considers $3,500 a worst-case backtest but thinks deeper declines are unlikely.
Macro Uncertainty Elevates Short-Term Risk
- Macro uncertainty (government shutdown, repo issues, weak bitcoin) increases short-term risk for gold and miners.
- External liquidity and market stresses can quickly change market tone despite bullish fundamentals.