Sometimes, It’s Just One Sentence

‘If Russia’s commodity sales decline, it could sell-off some of its gold reserves to pay for war in the Ukraine.’

That, my friends may be the clue, the dent, the chink in the armor.

What if everybody (i.e., other nations) winds up in a similar spot for various reasons … being forced to sell off gold reserves?

It’s early in this session and gold’s attempting to breakout above well-established resistance.

For GLD, the 76.4%, Fibonacci retrace is near 185.50 – 185.60.

Currently GLD, has posted an intraday high of 185.40.

Gold (GLD), Daily Close

Getting closer in on the action (below) we see GLD, at or near 76.4%, retrace, attempting to break through established resistance at the same level.

We’re obviously at the danger point.

It’s time for GLD, to decide on its next move.

Strategy Note

From a strategy standpoint, we can almost feel the pressures. Emerging Markets (EEM) continues to decline with TSM, leading the way.

Obviously, downward pressure.

Then, we have upward pressure on the metals (less so, silver) and the big question is … Is this pressure temporary?

Are all sectors (ex. food/energy) in decline with gold/silver just the last ones to reverse?

Price action itself will let us know.

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