It would be unpleasant to protect the shiny metal here with sellers mobile and threatening the waterfall. Well done those who are riding the move down since Fed, a simple concept of a journey back towards support.
By completing the breakdown sellers are unlocking $1,803 as an initial target area with a daily closing below $1,910. Unaware retail may have been caught buying an over priced bag of coal, sentencing to death all the investors who thought they could hide in Gold as we mark the highs for some years to come.
For anything else below $1,803 it will take momentum. Target-wise below $1,765 and $1,557 are next. The momentum must either be executed via the dollar or condemning the inflation story to death. We will dig deeper into the macro side over the coming sessions.
Thanks as usual for keeping the feedback coming 👍or 👎
Gold is not for the impatient or for those who believe it will always rise. It does, but in the very long run.
The last time the financial crisis of 2008 was underway, there was a longer correction from February to August 2009, then Gold rose until October 2012 (followed by a 50% correction and a longer sleep period of 5 years from December 2013 to September 2018). It is possible that it will take a similar course in the impending Global Debt Crisis. There should be no short or medium term worries until 2023, IMO. Then we can look further.
ridethepig
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Thanks for sharing your excellent chart @ReallyMe, a very clear expectation of a deep pullback before continuation. You are of course right to mention 2023 as it looks the year commodity shortages will really start entering into play. The 'waterfall' element to the thesis will depend on whether we see the sustained closing beneath $1,900.
Gold is not for the impatient or for those who believe it will always rise. It does, but in the very long run.
The last time the financial crisis of 2008 was underway, there was a longer correction from February to August 2009, then Gold rose until October 2012 (followed by a 50% correction and a longer sleep period of 5 years from December 2013 to September 2018). It is possible that it will take a similar course in the impending Global Debt Crisis. There should be no short or medium term worries until 2023, IMO. Then we can look further.