Valuations remain deep into dangerous bubble territory, which portends a looming bear market to maul prices back down in line with earnings. Extreme valuations will likely head higher until that bear really roars.
While many point to the bad jobs data, we have to at least be honest in recognizing that the market began this decline well before those poor jobs numbers were announced.
The gold market is back up into what's defined as a bull trend: higher highs and higher lows. Now the key to the uptrend is the 18-day average of closes.
There can be blips of one-way price moves followed by large period of consolidation. Patience plus higher trailing stop loss is needed for the next thirty days.
This is day six of the 2024 stock market crash season and gold looks fantastic on this short-term chart. It also looks good and the price action suggests that $2600 may be coming soon.
If this number is taken out, It will revert to lower highs and lower lows and that will be the bearish part of the market. It can't afford, in plain English, to get under $2403.80.
When we take a look at this chart, the highest high the market really got up to is in this $2540 area. You have a higher high and lower low, that is not a trend.
Gold reached a high of $2,522.50 on Friday before falling back amidst a weak jobs report and fears the Fed waited too long and a recession is underway.
