Gold: Another Sharp Sell-off But Don't Fall For It
Updated
We had another sharp sell-off today as a fake bear break-out to the down side from as high as 1534 to 1484 and we have since rebounded to 1500 and likely close in the 1503 range. Recall, we had the same type of thing from 1438 to 1402. We will still close likely at 1500 or above so the trend is still strong bull.
I expect to re-test 1525 this week and depending on geopolitical and political news, we could re-test 1535 as well.
While this was bound to happen, it happened on the back news from the USA delaying some tariffs for tech only in September. I suspected this large retracement was due around 1580, but based on the political news (which I always talk about as being so important), we basically had it now (2-3 weeks early).
My recommendation: Don't worry about it and stay long. In the next 1-2 weeks I suspect JNUG will have a 19-23% single day gain and push it back over 100.00 into the 105.00 range. Comparatively speaking, same idea for Gold/Silver stocks.
Now that we move away from this fake bull day, people will be back into buying Gold and Silver and we will continue our run for Gold and Silver to new highs.
- zSplit
I expect to re-test 1525 this week and depending on geopolitical and political news, we could re-test 1535 as well.
While this was bound to happen, it happened on the back news from the USA delaying some tariffs for tech only in September. I suspected this large retracement was due around 1580, but based on the political news (which I always talk about as being so important), we basically had it now (2-3 weeks early).
My recommendation: Don't worry about it and stay long. In the next 1-2 weeks I suspect JNUG will have a 19-23% single day gain and push it back over 100.00 into the 105.00 range. Comparatively speaking, same idea for Gold/Silver stocks.
Now that we move away from this fake bull day, people will be back into buying Gold and Silver and we will continue our run for Gold and Silver to new highs.
- zSplit
Note
One thing I want to add here is: wait for the 10YR/2YR inversion on the US treasuries.The 10YR is only about 1.7-1.8% ahead. Once the 10YR is below the 2YR, you will see a massive algo sell-off with a strong bull in Gold. When this happens, you can expect a 30-40.00 move in Gold.
Always remember: never panic sell metallics. Wait for 2 days of consecutive confirmation before selling.
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