After a nine-week winning streak, gold could be excused for finally taking a break. The drop was overdue, as we had noted the prolonged period of gold being overbought.
It is still too early to determine which form wave (iv) will take but based on the formation of wave (ii), we should expect wave (iv) to become either a bullish triangle, flat or irregular type correction…
For 2025, 43 trading weeks are now complete. Therein, Gold has compiled 31 up weeks (+2.2% average gain) and 12 down weeks (-1.9% average loss). Indeed, 11 of the past 13 weeks have been up.
Regardless of the longer-term fundamentals for gold and silver which we know are spectacular, we can expect them to take a hit from temporary dollar strength and correct...
With respect to Gold potentially correcting at least over the near-term, the above graphic’s graveyard regardless reminds us that “Shorting Gold is a bad idea.”
