Has the near-term downside Gold correction run its course? Or is the perfect Fibonacci Golden Ratio retracement and subsequent same-day pullback signaling the resumption of such downside?
Gold is changing trends, and that does not bode well for 2025 for most markets. Gold has counter-cyclical characteristics and the gold mining industry leverages gold’s relative standing to the cyclical macro.
Given all the uncertainty, central banks everywhere are loading up on gold. That is one of the prime reasons gold is embarking on what potentially could be a multi-year bull market ala 1971-1980 and 2001-2011.
The market is up nearly 2% percent for the month and stepping out of this ladder that we had and with the action, it has now changed the trend. Now, you have higher lows and higher highs.
So as you look at the market, you've got gold up $8 for the week, up a third of a percentage point, nothing is really going on. You don't have a trend, you have a lower low and a higher high on the swing line.
The miners? Well, as gold arrived at the $2400 area, I suggested a “pause with grace” was in order for the mining stocks, and that’s exactly what has transpired.
The gold market is staying underneath the 18-day average of closes. In order for the market to turn bullish at least I need to see a close over the 18-day average of $2348.60.
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.
