A 50% retracement of an enormous move is common for gold. In the current situation, a retracement of the move from $2000 to $5600 would put gold at about $3800.
Ira Epstein discusses the current state of the metals market, noting that gold has rebounded from the $4,000 level, while silver remains unimpressive and copper is resisting staying below $640.
Ira Epstein discusses the current state of the metal markets, emphasizing that they are not favorable for investment at the moment, particularly with gold hovering around $4,000.
Central banks worldwide are reportedly accumulating gold at four times their usual pace while increasingly diversifying storage locations away from the U.S., according to Fortune.
Gold price targets could be $6,500 to $7,700, although some are predicting even higher with $10,000 for gold mentioned numerous times. First, however, we have to find the bottom of the current sell-off.
Any asset which is fundamentally strong but has seen extreme selling this year should see the start of a recovery phase, followed by a bull run and a FOMO rally.
Notwithstanding breaking a bit below the “The Floor”, as you see, Gold’s been there before, as recently as this past July. Yet, as we’ve herein eloquently waxed over these many years: “Change is an Illusion whereas Price is the Truth.”
The mini-mania in Fed-rate-hike odds and resulting surging US dollar driving that gold weakness are overdue to reverse, paving the way for sizable-to-large mean-reversion gold buying.
