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Gold threatens a triple top
If you keep on knocking, eventually they let you in.
Gold ran into a wall at $1830 last month and then crumbled as low as $1680 but it impressively got off the mat there and is now back to where it started.
That resilience is a sign of strength but the ‘final boss’ is on the horizon. Gold needs to get above the July high of $1834 to make a run for it. The high today so far is $1829. If it can break though, then not much is standing in the way of a return to $1900.
I think it will but I don’t see any reason not to wait and see before buying it.
What worries me beyond that is we’re going to see a major collision between a) A disappointing US/global economy 2) Bottleneck price pressures.
It’s a classic stagflationary environment and the Fed might be tricked into hiking in the misguided belief that it can solve the lack of shipping containers in Beijing and semiconductors in Taiwan. But that’s a question for another day.