A catalyst could spark major gold-futures selling which could quickly snowball, slamming gold into a larger pullback. But this doesn’t guarantee an imminent gold selloff.
I call the market stuck between $2570 down to this support near the $2500 level, caught in there, and we now have a pattern of lower highs and higher lows.
I believe the next U.S. President will be seen as ineffective due to negative social sentiment, leading to a strong downturn and a potential multi-year or multi-decade bear market.
The dollar likely finished a 14-year secular bull market in late 2022, starting a bear move. Around July, gold rallied, breaking above the $2450 resistance zone and reaching around $2570.
