Until the recent low is taken out of $2340.20, I think that is the line in the sand now for the bulls and they're going to try to push on the market if they can.
Gold is up 14.6% in 2024, silver up 17.6%, and copper up 9.5%. Gold’s safe-haven status was fully recognized, given the rush into gold this past week. Note how the volume leaped.
"Are you forecasting a higher price for this year?" We shan’t, having already staked our claim. Still, so as to keep eyebrows raised, let’s reprise what made the $2,375 call...
If gold does react back how much might it drop? – probably not much given the other much more serious bullish factors in play that aren’t going anywhere.
The bottom line is gold is extremely overbought today, warning of high risks for a sharp selloff. But even after rallying so far so fast, this powerful gold upleg still looks to have lots of room to run.
Getting off the idealist views and back to the technical view, gold’s weekly chart is purely bullish. The pattern of this chart targets $2450. This is a purely bullish breakout to blue sky.
So when I come to the gold market, number one, it's fighting off a rally in the dollar. Number two, it is fighting off, very successfully, a rally in interest rates.
Many observers will naturally worry about the next correction after unexpected and sudden strength. It is almost a knee-jerk reaction after many fits and starts in recent years.
