Gold’s ascent rests in no small part on central bank buying, especially from Asia and other emerging markets, writes Bloomberg. This demand is likely to continue throughout 2024.
Gold declines may be underway following an intermediate top. We will buy on pull backs, but it's too difficult to predict the top at this point. Don't try to catch every penny with trades.
Stagflation is good for commodities but bad for the stock market. Gold's uptrend is intact unless we break under $2,300. Then we’d shift to a slightly deeper correction and for maybe a bit longer.
Note gold's forecast high (2375) having been achieved and then some, followed a pullback. We added scaling space up toward 2600, just in case, (wink wink, nudge nudge…)
So while the swing line has turned up the battleground is very clear. It's at the $2360 level; for me to get friendly, you need to close over it. So far it's a bear market rally because of the bias.
The gold market has been over that 18-day average all this time. So it's had a heck of a run and it is now the correction phase that it's in. I didn't say a bear market phase.
The gold price had a bad day, falling by more than 2%. Whilst we may well see some additional pullback, we don’t expect this to be the end of the gold price rally.
