The NY Fed disclosed data on maxed-out borrowers with high credit card utilization rates, which typically signals tight cash flow and financial issues for the borrower.
Gold is up about 1.38%, not dropping significantly. It fell from $2475 to the $2340s, losing $100 an ounce. Currently, it's stable, trying to determine its next move.
Incoming US economic data releases (for May 2024) so far this week indicate a mild slowdown. Political uncertainty in key nations will always be bullish for gold and precious metals.
My initial target of $2428 for gold last year was exceeded before consolidation. I expect we will likely move up to the $2700 region in gold in the coming weeks.
I’ve set a $2300-$2365 buy zone for gold, which is almost reached. With most mining stocks and silver bullion overbought, I suggest buying in the gold buy zone, but in very modest amounts.
Despite not feeling like it, the market is up 0.11% weekly. It shows a bearish trend with resistance at the 18-day average. A close above $2387.5 might indicate gold stabilizing.
When die-hard bears turn bullish, look out for a potential market top, as it likely means the overly bullish pervasive sentiment has even affected them.
