All the corrections since the beginning of 2024 have been sideways churns. Maybe this next one (the one that’s impending) will be as well, or maybe it’ll be more of an ABC-type correction. I don’t know. But you have corrections; markets just don’t go straight up forever.
Unless, of course, you’re in the parabolic bubble phase of a bull market, which means you’ve only got maybe six to eight months left before you’re dealing with a multi-decade bear market. I don’t think we’re in that phase yet. So we need to continue to have regular intermediate corrections to clear sentiment, and that’s what drives these corrections.
The fundamentals for the gold bull market have not changed. They didn’t change when gold went sideways. They didn’t change when gold was in this triangle. They didn’t change during this four-month consolidation. It’s simply that sentiment gets too bullish.
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