Gold broke out of it's big rising wedge last week and I saw gold bugs cheering for $3000 therefore based on technical projections etc. I like when price fakes out of wedges and triangles. It is a good risk reward to bet on it going to the other side of the pattern and beyond.
I think Gold might have topped here. The primary narrative for gold has run it's course: Data is suggesting inflation is dealt with and I think we might be entering a deflationary period. The narrative always turns before the price does. I don't think gold's price will hold up very well in the next period.
Gold bugs are relying on secondary narratives now like BRICS or war risk or rate cuts or that inflation will reignite with rate cuts.
Easily proven wrong if gold closes back above the wedge and makes new highs. Bandt etc will say yesterday's action was simply a backtest of the prior range and of course they might be correct.
I think Gold might have topped here. The primary narrative for gold has run it's course: Data is suggesting inflation is dealt with and I think we might be entering a deflationary period. The narrative always turns before the price does. I don't think gold's price will hold up very well in the next period.
Gold bugs are relying on secondary narratives now like BRICS or war risk or rate cuts or that inflation will reignite with rate cuts.
Easily proven wrong if gold closes back above the wedge and makes new highs. Bandt etc will say yesterday's action was simply a backtest of the prior range and of course they might be correct.
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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.