Gold has proven to be an exceptional hedge against the prevailing uncertainty in global markets, with much of this volatility driven by geopolitical tensions and policy unpredictability stemming from the influence of Donald Trump. Amid this backdrop, investors have increasingly sought safety in tangible assets, and gold has emerged as a preferred store of value.
Presently, GOLD has reached a significant technical milestone — the 1.618 Fibonacci extension level from the 2015 bear market low — after delivering a remarkable 100% appreciation over the past decade. This confluence of long-term Fibonacci projections and a sharp acceleration in price suggests that gold may be approaching a key inflection point.
Given the speed and magnitude of this recent rally, a period of consolidation or even a short-term pullback appears likely. Traders and long-term holders may begin to lock in profits, especially as valuations in gold become stretched relative to historical norms. The capital generated from this profit-taking could be rotated into other asset classes that are currently oversold or undervalued, potentially igniting a broader rebalancing across financial markets.
In this context, I see gold not only as a barometer of risk sentiment but also as a potential trigger for cross-asset shifts. Should profit-taking in gold accelerate, it could act as a catalyst for renewed interest in equities, commodities, or even emerging markets — areas that may offer more attractive risk-reward profiles at current levels. As such, I’ll be closely watching gold’s price action, not just in isolation, but for the signals it may send about broader market dynamics and capital flows.
Presently, GOLD has reached a significant technical milestone — the 1.618 Fibonacci extension level from the 2015 bear market low — after delivering a remarkable 100% appreciation over the past decade. This confluence of long-term Fibonacci projections and a sharp acceleration in price suggests that gold may be approaching a key inflection point.
Given the speed and magnitude of this recent rally, a period of consolidation or even a short-term pullback appears likely. Traders and long-term holders may begin to lock in profits, especially as valuations in gold become stretched relative to historical norms. The capital generated from this profit-taking could be rotated into other asset classes that are currently oversold or undervalued, potentially igniting a broader rebalancing across financial markets.
In this context, I see gold not only as a barometer of risk sentiment but also as a potential trigger for cross-asset shifts. Should profit-taking in gold accelerate, it could act as a catalyst for renewed interest in equities, commodities, or even emerging markets — areas that may offer more attractive risk-reward profiles at current levels. As such, I’ll be closely watching gold’s price action, not just in isolation, but for the signals it may send about broader market dynamics and capital flows.
Note
How I am approaching GOLD moving forward for a potential 5 count wave , where the common target for 3 is the 1.618 extension, and the 4th wave can be a great buy for a blow-off top when the federal reserves begins quantitive easing and stimulus. Note
Here comes the breakdown 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.