Gold’s breakout upleg into nominal record territory is set to accelerate in 2024. New records generate bullish financial-media coverage putting gold back on investors’ radars.
Traditional thinking tells us that gold should struggle under a period of rate hikes and tight monetary policy. If a 13% climb is gold ‘struggling’ then we’re looking forward to seeing how it does as interest rates come down.
On a daily chart, the bias is still up. So if you were to get under $2038.30 and close under that number especially, you'd have a pattern of lower highs and lower lows and have your first bearish pattern in the market.
The first real test of 2024 is today for bulls of gold, silver and copper. Jobs are the key. Slower hiring, an increase in the unemployment rate is needed for quicker interest rate cuts.
When you take a look at the Feb gold, if you take a look at this high to this low, you had a bounce of just about 50% plus and you've pulled back a little bit. The market stepped out of its uptrend.
You have a higher high and a lower low pattern, that is not a trend. The market has upside bias, the support's all the way back to the 18-day average of closes at $2047.
Even if one is lucky enough to accurately predict “future information,” they can still get the market direction completely wrong. And, we have all seen this happen more times than I can count.
When you take a look at the chart, we got up into here into the $2150s, came crashing on down, and then came back up, and we're now having that correction.
