With very little set to improve in the coming years, whether it is money supply, the Middle East, the Russia-Ukraine war, we think 2024 will prove to be another pivotal one for gold.
The market is staying over the 18-week average of closes, you had that monster break. This market has just negated a downtrend. Lower highs, lower lows – a downtrend by the classic method.
Economics will more often point you in the wrong direction when it comes to the stock market. Economic factors do not drive the market. Rather, market sentiment does.
The dream would be that the gold market keeps coming down on the weekly chart and gets into that 18-week average, holds it, and starts up again, but I don't think that's going to be the play.
Gold’s surge Monday evaporated before U.S. market open, finishing the day nearly $50 lower. China added more gold to its reserves in November, their 13th consecutive monthly purchase.
Coming is the so-called Santa Claus rally and the January effect. Watch carefully. Gold often makes a low in December. Gold fell sharply on December 8.
Gold isn’t going to $2,500 in the current macro environment — high rates, a high dollar, lower inflation, and positive real rates are all bearish for gold.
