Miners’ rally failed, gold’s upward momentum is broken, and the USDX appears to have bottomed. Very interesting times ahead!
Exclusive Gold Price Analysis
In yesterday’s analysis, I wrote that mining stocks’ rally was likely temporary. Indeed, they already moved back below our entry point for the current short position.
While the yellow metal remains uplifted, silver and mining stocks’ relative weakness highlights the ominous fundamental backdrop.
Gold didn’t just invalidate the move above $2,000. It moved even lower – that’s how we know the invalidation is real. And so are its consequences.
I don’t want to go all I-told-you, but I told you. Gold’s rally was suspicious, and indeed, it was just invalidated.
The geopolitical tensions increase but fear thereof already peaked. The implications for the markets are clear.
Gold price moved higher on Wednesday, and this move might be confusing. Is the pullback over? Or is this a broader top?
Gold Price Analysis
Expectations for gold to move higher in price are often tied to worsening inflation and a possible collapse in the U.S. dollar.
While looser monetary policy may seem bullish in the short term, the medium-term ramifications could upend the yellow metal.
We got the silver signal, we saw the analogy to the previous low-CPI-number surprise, and now we have this.
Amid a Thanksgiving-induced market calm, this week saw the dollar stabilize and U.S. yields rise, hinting at only a temporary shift in market dynamics.