It's been about 3 months since I last posted about the Spot Gold Price and I had high hopes when I pointed out that there was Clear Sky for Gold with a New All-Time High back in January. However, I never expected to see such a massive rally in my wildest fantasies. Just take a look at the chart below to see the price action of the last 3 months!
It's getting to the point now where the technical indicators are starting to scream Overbought and of course when markets make these sorts of moves people start talking about it being a Paradigm Shift due to changed Fundamentals and it's hard to know which is the truth. Could both be true?
As a Silver Gold Stacker of many years now, this recent sharp move higher is no surprise to me. In fact I've been expecting a significant repricing of Precious Metals higher as the global financial system continues to break down and Fiat Currencies progress along their End Game story arc, but still I have to wonder if it's all happening too fast.
This recent rip-your-face rally is mostly in the context of the major ructions being felt across the global financial markets. Mr Market has been throwing a tantrum about US President Trumps "Reciprocal Tariffs" but what is perhaps even more prescient is the reported conflict between Trump and Fed Chair Jerome Powell over Interest Rate Policy. There is growing speculation that Powell will be removed (somehow?) by Trump and the replacement will start slashing rates and return the US to Quantitative Easing (easy money) and I think this is the main reason why the Gold market is exploding at the moment....the US Dollar, Reserve Currency of the World is actually tanking...
Again, this is no surprise. However is the current narrative being overplayed? I think it might be. Gold may yet keep running higher of course, but unless we go into full financial meltdown in the next couple of weeks I don't think it can sustain its current trajectory and it will absolutely need to pull back and consolidate. If I had to pluck a number I'd guess about $3500 for an interim top and likely Resistance. I would love to see Gold Consolidate around these levels for a couple of months and then resume a more sustainable uptrend later in the year rather than face a sharp pullback. We will see...
