You see, with silver out-performing gold (since well before the #silversqueeze promotion), with inflation expectations rising, with cyclical commodities rising, with the government set to panic a shit load more fiscal policy into the economy… gold is normal. It is still unwinding a blow off in fear and angst after the deflationary spring.
Of course the two red towers that mysteriously reversed gold out of a pair of breakouts (of sorts) are of suspect origin. But maybe da boyz was just doin’ da bugz a favor in presenting a great buying opportunity to come by keeping gold on its proper corrective course. The best support area is and has been the low-mid 1700s (with allowance for a spike to the lower trend line).
The gold price ticked back into the 1700s today. Maybe it is another false breakdown (this correction has featured whipsaws in both directions) or maybe it’s going to bang support. But it doesn’t matter. The correction is normal.
The opportunity would be to buy a non-starter, a non-participant in the Reflation Olympics for its real purpose, which is monetary value and insurance (as opposed to the ‘buy gold is because… inflation!’ tout).
The agonizing correction on the daily chart above is actually the Handle to the bullish Cup that gold finished making when it made a higher high to 2011. We (in NFTRH) originally projected months of Handle making if it was to be a proper one, and that is what is happening. Da boyz musta knew it. Dey ain’t stoopid ya know.
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