Even if gold miraculously consolidates high again out of multi-decade extremes, it likely faces much more drifting and considerable selling back into the lower quartile of its range.
Any time a market starts moving like the silver market has lately, there's potential for downside volatility. You get hot money piling in that didn’t even know how to spell the word silver a week ago.
Ira Epstein covers the recent Federal Reserve decision to implement a dovish cut by initiating a $40 billion monthly purchase of short-term treasuries.
In a nutshell: gold can go higher, but it’s moved up tremendously in a relatively short (and joyous!) time. If it goes higher, the investor is very happy. If it dips significantly, more can be bought.
Ira Epstein highlights the recent performance of gold, noting its dramatic rise despite being down for the week, and examines the gold-silver ratio, which shows silver gaining strength.
The best performing precious metal for the past week was silver, up about 3.6%. The metal has gained nearly 22% in the past month, previously hitting $50 an ounce in 1980 and 2011.
Within wave (iv) we completed wave -a- at the 3886.50 low and it now looks like wave -b- is still underway, although it could now be complete at the 4265.70 high.
