Gold Ripping Faces Off but Now Overbought?
It's been about 3 months since I last posted about the Spot Gold Price and I had high hopes when I pointed out that there was Clear Sky for Gold with a New All-Time High back in January. However, I never expected to see such a massive rally in my wildest fantasies. Just take a look at the chart below to see the price action of the last 3 months!
Source
It's getting to the point now where the technical indicators are starting to scream Overbought and of course when markets make these sorts of moves people start talking about it being a Paradigm Shift due to changed Fundamentals and it's hard to know which is the truth. Could both be true?
As a Silver Gold Stacker of many years now, this recent sharp move higher is no surprise to me. In fact I've been expecting a significant repricing of Precious Metals higher as the global financial system continues to break down and Fiat Currencies progress along their End Game story arc, but still I have to wonder if it's all happening too fast.
This recent rip-your-face rally is mostly in the context of the major ructions being felt across the global financial markets. Mr Market has been throwing a tantrum about US President Trumps "Reciprocal Tariffs" but what is perhaps even more prescient is the reported conflict between Trump and Fed Chair Jerome Powell over Interest Rate Policy. There is growing speculation that Powell will be removed (somehow?) by Trump and the replacement will start slashing rates and return the US to Quantitative Easing (easy money) and I think this is the main reason why the Gold market is exploding at the moment....the US Dollar, Reserve Currency of the World is actually tanking...
Again, this is no surprise. However is the current narrative being overplayed? I think it might be. Gold may yet keep running higher of course, but unless we go into full financial meltdown in the next couple of weeks I don't think it can sustain its current trajectory and it will absolutely need to pull back and consolidate. If I had to pluck a number I'd guess about $3500 for an interim top and likely Resistance. I would love to see Gold Consolidate around these levels for a couple of months and then resume a more sustainable uptrend later in the year rather than face a sharp pullback. We will see...
The price of gold has been steadily increasing, it has been a great time to trade gold. Gold is going sky high and giving huge profits.
Just so you know, the Melt Value of Gold will stop at $90 per ounce in Sound Money... That's 9,000 of today's Fiat USD's...
People here say it can reach 4000 by the end of the year
These increases can’t last. At some point they need to consolidate, or something big is going to happen and we don’t know it.
Indeed. All we can do is observe and react...and hope for the best!
What I want to say here is that those who have bought gold at $2200 or $2,300 should definitely make some profit and then buy again when it comes down. This strategy can only give profit.
$3500 sounds like the perfect place to build a new floor price but after being the new ceiling price first. With so many financial issues pushing gold prices up Trump's tariffs seemed to be a big cherry on top of it all. I hope things settle long enough that I can pick up another few 1/4 oz gold coins before it really gets out of reach.
!PIMP
I put the floor at $3000 at the moment. If we get the nice consolidation I am hoping for we might then blow through $3500 later in the year and never look back. Trumpy is making it hard to predict what comes next. Today I read he's looking to cut back Chinas tariffs, so who knows?
Its getting overheated, Price going parabolic now.