Well gold broke through an important support, which led me to look at the big picture on very long timeframes.
It is interesting to see, that the first major gold rally, sparked by Nixon's lifting of the gold standard, has quite some fractal similarities with the second one, sparked by the gold ETF.
Now, if we compare the two, we get to the conclusion, that if history repeats itself, we could see gold going sideways for a veeeeeery long time. Like very, very, very long. I identified the fractals with numbers for future peaks and circles for peaks that already happened.
I hope to see a gold rally earlier, but the miserable performance of precious metals the last years doesn't make me too optimistic short-term or medium term. A rally will come of course at some point, but it could really take a while.
I'm not so sure. The dxy plunge for a bit today made the algorithms show their hand a bit more. The behavior on those timeframes is similar to the huge spike in Bitcoin two days ago. I think gold is merely acting like a dead store of value, but the big players are ready to jump into it at a moment's notice
SebastianofMoon
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@ReadyInsight, Could be, yes. These fractals never repeat 100% exactly the same way, the gold rally could start much sooner than that. It is just a "Gedankenexperiment" to use a fractal analysis on gold.
darobsta
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I have set a Google reminder. Thanks for the hot tip! ;-)
SebastianofMoon
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@darobsta, Yes, me too. I'll probably live on mars by that time, so I hope that I'll be able to make the buy order via the interplanetary internet system XD