Twitter annoyed me today because it showed me a 10,000/oz. price projection for gold. I get sour about that stuff because people read it and some of them being human or relatively new on the block, they believe it in their righteous hearts.
Some day such projections will probably be right. The Fed is in danger of blowing a gasket, after all. But could we get to 5,000/oz. first? I think that is the target where James Sinclair used to hump Martin Armstrong’s view (before he or his computer, you know, redacted the target) well over a decade ago. In fact, can we get to 3,000 first? That’s the goal today’s more realistic cheerleaders have been rooting for over the last several months.
The gold price entered a bull market when it crossed 1378 last year. Here is a fact… gold is still above 1378. What’s more, the monthly candle is pulling back to address the US-Iran noise that got into the market. Gold had been making a nice downward trending bull flag before the combination of the Santa seasonal (the goons were on holiday, after all) and the drone strike (with impending WW3) got in there.
It will either use the top of that flag as support or drop back into it. This all looks like nothing on the monthly chart, but on a daily it could send the bugs into full frontal conspiracy mode if the evil incarnate in the CoT finally drive gold all the way down to the 1420s (my original, and thus far incorrect, target). To do that it would have to violate the up trending daily SMA 50 and ding the up trending SMA 200. So it’s no sure thing. But two important words from the previous sentence… Up. Trending.
My point? It’s a bull market. Relax.
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