And of course, silver.
There is a lot of freaking out today about the fact that gold crashed through the 200 day moving average and silver, along with many industrial metals, looked just as bad if not worse.
Before addressing the technical side of things, let us address the reality:
Gold and silver are not dropping because of a healthy economy, inflation, deflation, or any mainstream economic reason presented in the mainstream media.
Precious metals, along with other commodities are tanking along with bonds, equities, and derivative instruments the public can not see because of distress in the financial plumbing and the dire need to raise good old fashioned US dollars to close and satisfy trades domestically and internationally that were in fashion in the pre-war perpetual “one can not lose” bull market.
Hell, back in the old days, one could invest in a shitcoin named after the President and make money for God’s sake.
But here we are watching people freak out over the violent moves today and panic over nothing. Equity volume was elevated, but not to the levels of total insanity. Commodity liquidation along with US bond market sales was orderly. So why are the rookie, younger, and newbie goldbugs freaking out?
Because the TV told them to.
Let us start this article before adding this author’s opinion with the charts that freaked the rookies out and start contemplating what is next.
First off, gold:
So the theory is that because gold cratered since March, the market is dead forever. Let us play along with all the cryptobears and anti-real money crowd for the sake of argument.
Gold has broken a long term turned line and violated an early 2026 and first move in 2025 intermediate term move. Because of course it has never done that before except with every bull move in history. How bad is the “technical” damage?
This bad:
This indicator is the massive trend change wants to look out for. But is it death for the “gold bulls” or is it a more of a macro indicator?
Before this author answers the question, let’s take a sneak peak at silver.
So the silver market behaved as expected. TO an extreme, an attempted rally in March, then rolling over. As this author has warned support between $46-$52 is to be expected and if this summer progresses as expected, nothing changes that forecast.
Now back to gold.
Way, way, way back, the last time I posted an “OMG” gold warning on October 21, 2025 this was my statement:
- The rally is intact
- Support is still around 3800 for gold
- Central banks will still be buying
- Smart retail will buy any dips below $4000 per ounce
- Economic stability is not returning to the West any time soon
There is absolutely zero reason to change this forecast.
IF the equity markets start hitting key Fibonacci retracement levels, starting with -23.6%, then all hell will break loose and just like today paper and physical gold will be liquidated to raise US dollars. Does this mean there are no buyers?
Duh, no.
Panic will create a market for central banks not trapped in a quagmire militarily and those nations wishing to rid their excess fiat dollars in exchange for a more stable long term exchange of value.
In other words, this too shall pass.
Meanwhile, pick your strike price carefully and avoid the miners for the foreseeable future.
