When you take a look at the Feb gold, if you take a look at this high to this low, you had a bounce of just about 50% plus and you've pulled back a little bit. The market stepped out of its uptrend.
You have a higher high and a lower low pattern, that is not a trend. The market has upside bias, the support's all the way back to the 18-day average of closes at $2047.
Even if one is lucky enough to accurately predict “future information,” they can still get the market direction completely wrong. And, we have all seen this happen more times than I can count.
When you take a look at the chart, we got up into here into the $2150s, came crashing on down, and then came back up, and we're now having that correction.
One wonders how much longer the S&P 500 can trade at nearly double its earnings valuation and Gold at nearly half of its currency debasement valuation. Reversion at some point shall be nigh. And historically, ’tis always arrived.
Real inflation-adjusted gold prices remain far from their peak. While $2,100 gold is high, its January 1980 peak translates into $3,355 in today’s dollars per the intentionally-lowballed CPI.
The rally is sucking in the holdout FOMOs who, one by one are falling for the duel pleasantries of a softening Fed and by extension, a Goldilocks-like “soft landing” scenario for the economy.
