Gold is supposed to be a safe haven, inflation and debt hedge, and yet it's not acting accordingly because Wall Street believes J Powell liar extraordinaire. The US dollar has spiked over 108 with record debt and deficits. This selloff in gold and run to the US dollar is TEMPORARY. When Wall Street figures out the fed cannot reduce it's balance sheet to zero, EVER. When wall street figures out the fed will pivot and reverse course when the economy collapses (and it will) by the time they react it'll be too late. We won't see a recession, we will be in a depression. Looking for a bounce to $1800 and cloud resistance sits at $1853. Long term I expect gold priced I US dollar to surpass $3,000- 5- 10k or more per ounce once the US dollar collapses on the weight of our debt
I agree. Soon USD will peak and when momentum goes short on Dollar, Gold will soar. I am thinking worst case scenario is $1600 range depending on the how long dollar rally lasts but things will go the other way. Bonds are also starting to rotate so dollar could be next as well.
jakec90
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Money is running out of gold and into the USD due to inflation and hawkish monetary policy. You have said some valid points here but you are too dogmatic in your approach, gold will drop to 1600-1500 before a swing up. Too many derivatives markets off gold now too, its heavily manipulated now vs its once strong spot product
Shortit76
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@jakec90, sounds like you don’t understand inflation or why the dollar is going up. Either way, time will tell. Good luck!
jakec90
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@Shortit76, ok mate, we will see who is right here, inflation doesn't mean stores of value go up automatically, increased costs of living and larger repayments on lines of credit mean that liquidity is shifting into fiat especially the USD. Have fun with your losses you have no idea what you're even talking about