What’s Left To Drive It Higher ?

It all lined up for gold in the form of international tensions, military on the move, then outright invasion.

The ‘safe haven’ metal of course, launched higher.

It’s what happened next that’s the important part.

Steadfast on this site, is the premise, It’s not inflation … at least not the kind in the form of credit creation with persistent rising wages and prices.

The charts themselves show the retrace from the lows of March 8th, 2021, to now (today), is a counter trend move.

Unless today’s reversal bar is penetrated to the up-side, the main trend is either sideways or down.

Gold (GLD) Weekly:

Re-stating again, Elliott Wave is not used as the main analysis tool.

However, it can’t be denied that GLD, looks as if it just completed an ‘a-b-c’ correction with both ‘a’ and ‘c’ waves of equal length (vertical blue lines are equal).

It’s a near textbook example.

Adding to the potential reversal case is the up-thrust position as shown.

For the bearish assessment to change to bullish … this resistance area will need to be penetrated and successfully tested.

Anything can happen … so we’ll see what happens next.

Enter, The Famine

Here is a link that only requires the first 50-seconds of one’s time. The presenter is an offensive character to say the least.

However, this site searches out as many sources as possible; sifting through the trash to find kernels of truth is a necessary requirement.

With that said, restricting the food supply results in a compliant population.

That’s most likely the next area(s) of focus for our benevolent controlling oligarchs.

Summary:

This is gold’s chance for a continued breakout to the upside if it’s really a bull market.

If it fails and reverses, we know the main trend is down and potentially leading to some kind of deflationary impulse.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279