It’s a patience thing. 2020 was good to gold, jerking the herds in and authenticating the perma “Got Gold?” pumpers. But 2020 is also bad for gold (in the pumpers’ view) as the hype gets bled out, month after month. That’s good. Real good.
That bleeding is actually the Handle of a giant Cup. Here is a monthly chart that we used last year to track gold’s attempts and final bullish resolution at 1378. How much patience did it take to manage gold’s bowl pattern and several would-be breakout failures? A lot, man.
Gold’s Handle consolidation is in its 4th month. We had originally anticipated several months at least to form a mature Handle after the big bullish move that sucked all the macro refugees in. It has now been “several” months, but it could drag on a little longer. Gold has earned this rest. The Cup’s target is near 3000. Yeah, the same 3000 that the pumpers were humping in 2007 to 2011. Except that this time it is technically viable after the great work that cyclical bear market did.
Gold is fine. Don’t sweat the correction. Well, if you are a momo who got on because you listened to the perma-pompoms, then you should sweat it. You need to sweat it, because the gold price needs you gone, sanitized, cleaned and buffed.
Okay girls, don’t get too complacent. Your time will come… again. It always does.
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