For once I can say the title of this article for the first time since the Great Financial Crisis and not spew my cocktail all over my computer screen.
Amazing, isn’t it?
Gold has been under the gun since kissing $2500 plus during the perceived threat of an open and all out war between Iran and Israel. Yet the pullbacks have been normal, healthy, and well within target prices for those are long term buy and hold players in this market.
As I postulated a few weeks ago in A Gold Correction is Coming the correction would be sharp, sudden and deep and thus far it has been.
Nothing has changed in this author’s view and if one looks at a longer term view, this time since the GFC, it provides some much needed perspective instead of the usual media hysteria.
As CRE, housing, and the threat of stagflation hanging like the executioner’s blade over America’s political and central banker’s heads, the idea of a return to QMeh, aka do nothing and pray, will not return.
Dr. Copper seems to confirm this idea with it’s usual technical volatility as it approaches new all times high in US trading.
As long as the good doctor doesn’t revisit the patient below the $4.00 area, this move should rise to new all time highs also in parallel to gold.
The odd soldier out once again is Nurse Silver and she’s just playing the ugly duckling for now.
Revisiting the short term support between $24.90-$26.00 seems likely as gold and copper drop in the weeks ahead, but odds are geopolitical events will drag the entire complex higher.
That and our incompetent combo of Powell and the Politicians deciding to inflate their way out of their own self-made mess.
Enjoy the buying opportunities because in markets like these, this price action only comes around a few times in a generation.
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