People have been looking for the gold 'bubble' to burst for years and it hasn't. Now everyone's trying to call the top with an entire army just waiting to buy on any major correction. Purely on a technical basis gold is overbought and should correct - and this is coming from a long-term gold bull - but I wouldn't be at all surprised to see it go much, much further before any significant correction occurs.
Bullion in a bull since 2001. Miners (not talking juniors) have lagged. Have operating leverage and predictable but slightly variable cost of production. It's not over 'til the fat lady sings. Pre-mature ejaculation is better suited for bedrooms than trading screens.
Actually, the trend is quite simple. Point A 1971 Point B 1980 Point C 2001 Point D. The here and now. Dealing with the low volatility consolidations and the high volatility shakeouts is the un-simple part.
Would you like me to tap dance? Gold is making a long term parabola. Long as in a decade. Long as in ..........long. 1970's Hard peg at $35 to $800ish. Commodities trend better than equities. Like a smile, gold is as universal as it gets. "Dur de dur dur dur. Golly, what goes up must come down. I'm a gonna short this son of a bitch, yess I am dur de durr dur. Just as a soon as I write this clever one-liner. Dur de durr durr dur. Be my guest. Like I said pre-mature ejaculation. The more shorts (identified prey) the better the rocket fuel. Graphically, it's ...........beyond extended. Yes there will be continued fakeouts and shakeouts. The fascination with short selling and its maximum unlevered 100% gain is itself..............fascinating. So is thee old kiosk in the mall contra-indicator. Who has the suiciidal tendencies? The one that will jump in front of a moving freight train? OR...........one that will buy in la la land? Hmmm.
It's going to 10u dude but Sure there can be big corrections... You bring forward historical moves yourself so you should know gold corrected 50% in the seventies before skyrocketing again... It really is anyones guess here...Good kick.
If ET wasnt so slow today I would have updated this 5 min ago... anyways, love the price action but the 168-171.75 will be major support...just bounced a dollar and a half as I type this,