I’ve seen it so many times in the last Decade or so since I started Stacking Precious Metals. Gold and/or Silver look like they are about to explode out of Pandoras Box and then a massive wave of Selling comes out of nowhere to smash it back into place. This time has been no different because after hitting a new Record High on Monday, the Gold price was then smashed. It recorded a $115 loss from the high intraday and that's the 6th biggest absolute intraday drop in the history of spot gold trading...with most of that loss occurring within an 8 hour window.
Notably, the other 5 big drops were all in the last 12 years (post-GFC) and we once again have the Genie back in the bottle with Gold price back below the key $2,050 USD level....for now. What this looks like on the Chart now is a confirmed Quadruple Top and personally I don’t know how long that top is going to hold because it's looking very vulnerable.
The interesting part about all of this is that despite the Gold price being Monkey-Hammered like this, it’s still trading at a price ratio of over 83:1 compared to Silver, which is historically fairly extreme. This suggests that Silver is being contained even more tightly than Gold and may even be a better buy at todays prices than Gold. As Gold goes Silver tends to follow and Silver is a much more volatile metal than Gold so if Gold does manage to Break Out properly then there could be some massive upside to Silver.
DISCLAIMER – This is not Financial Advice
