Gold should’ve blasted higher, since Fed rate cuts have proven so bullish for it historically. Speculators’ gold-futures positioning ahead of the Fed was really overextended.
Given the new proposal announced by the Fed, these efforts of the banking lobby were successful. We have already shared our thoughts about this unprecedented lobby campaign.
Their late-to-the-party buying could trigger a parabolic blowoff, but one that could see gold rise to not only the inverse H&S pattern target of $3300 but to $4000 or $5000.
I will not bore you with the mathematical details as to how I calculated the resistance, but 31.73 is coming up as a very strong point for me over the coming week.
Fed rate cuts are generally friendly to the metal markets...it appears to me that these cuts are meant to take place as you still have sticky inflation, and that doesn't hurt gold either.
