With everyone blaming rising interest rates for the S&P dropping 1300+ points off the early 2022 market high, the market has now seen an almost 1800-point rally off that low to make new all-time highs despite those higher interest rates.
Gold buying by central banks posted its strongest start to any year on record in 2024, helping drive overall demand for bullion higher in the first quarter.
Now you have a higher high and a lower low; gold ended that downtrend pattern. Now, the goal is, can the market get up to the 18-day average and what does it do there?
Gold continues to hold above $2,300. Further support can easily be seen, down to $2,240/$2,250. A breakdown under $2,200/$2,225 would be more problematic as we’d question the rally.
Any “pro” worth his or her salt ought hardly be “confounded” by anything the S&P does, certainly so when it declines from these ridiculously overvalued levels. A true “pro” ought to expect significant (understatement) downside risk.
Gold’s pullback maturing will be a great mid-upleg buying opportunity for gold miners, so traders should be watching fundamentally-superior smaller ones.
When you look at the gold market, it's down about 1% for the week. That's not so bad on a weekly chart. It's still got this pattern where it came down and it stepped down on the chart.
We're in a bit of a correction. If there's no question, in my mind, at least the major trend is up. The market's working in stages on the downside temporarily; you've got a higher high, lower low pattern – that is not a trend.
The market is marching down in price, at this point in time, the pattern was broken. You now have a higher high and lower low. Gold stepped out of an uptrend where the market had been fighting.
