While I may have a few minor concerns about the current emotional state of some gold market investors, I have absolutely no concerns about what I see on the gold chart. It’s a bullish work of art.
Still, if you want to drive from Los Angeles to New York, I think we can all agree that you should consider stopping for gas, correct?
Well, the gold price needs to stop for financial gas on its trip across “dollar country”, particularly when it has “driven” $240 uphill on the dollar price grid, and is preparing to blast above significant technical resistance.
Click here now to view the key daily gold chart. It’s a picture of bullish beauty, and I have highlighted the enormous wedge formation with two black trend lines.
It is normal, healthy, and desirable for price to pull back to the supply line of a wedge formation after the initial breakout to the upside, and that is happening now.
After rising about $240 an ounce without a fuel stop, your gold automobile has simply pulled into the financial gas station. The attendant is filling your car with gas, checking the oil, and even cleaning your golden windshield.
Sadly, many of you may be cursing the attendant this week, as he does his job. In the gold world, there are great gas stations. The service is impeccable, as shown by the gold chart.
Screaming at the attendant that you don’t need any gas to drive all the way across the country is perhaps not the smartest move, but it’s your call.
You don’t need to panic here at the gas station. Soon your gold car will be happily on its way across dollar country once again.
Liquidating juniors stocks at huge losses into $1525 and then rebuying them as gold soars into $1700-$1750 is the best way to get a lifetime membership card in the price chasing country club. It’s also an action that could impoverish you.
If the gold market is manipulated then it is all the more important not to engage in the action of chasing price. The banks likely are manipulating gold, and manipulating it higher, with central bank buy programs.
The question of why some gold investors have felt significant discomfort over the past few days is perhaps one that is better answered in front of the mirror than by trying to see who can reach the loudest decibel level while screaming that Friday’s jobs report is a fake one.
Silver fans should click here now. You can see that price has charged from about $26 to $34, and has now pulled into the financial gas station for a rest and a fill-up, alongside the lead gold car.