Markets are moving quickly at the moment. Only 9 days after Gold Broke Market Structure to Move Higher it has pushed ahead confidently to take out the previous All-Time-High. It is now threatening to go through the $2800 USD level and it's not really clear where the next point of Resistance will be. It's exciting times for Gold Bugs and stackers of the shiny stuff.
Some pundits are already talking about $3000 USD as being the next big target and that is starting to look like a reasonable call even if it's purely from a Technical Analysis perspective. I'm not so sure, but with clear sky above for Gold I'll probably put the TA aside for a little while and try to refocus on some Fundamental Analysis.
The Federal Reserve has once again come out recently to pour cold water on the prospect of more Rate Cuts but then Chairman Powell is apparently making Dovish Comments so once again there are mixed signals coming from the Central Banker of the US. Bank of Canada has just cut by 25 Basis Points and the US President is clearly putting the pressure on for lower rates.
Meanwhile in London there are reports of a Gold shortage as the minimum wait time to load gold out of the Bank of England has just reached 4 weeks. Apparently there is a lot of gold being moved out of London to New York and there is some noise as to the reasons why. For me it's fairly obvious that the UK Government is a disaster in progress and the smart money is probably getting their gold out to a more accommodative jurisdiction.
Regardless I am pretty happy with my recent portfolio adjustment to add some more Gold and will be content to watch the Bull Market in Precious Metals resume in 2025 if that's what we're seeing. I'll be keeping an eye out for a potential Smackdown that could happen in the lighter overnight trade especially as the weekend looms, but my gut says the horse may have already bolted and I'd expect decent support at $2715 even if a smackdown is attempted.
