Gold - 1600s Brushed!

 

Now really apropos is our anticipatory piece from two weeks ago ("Gold's Near-Term Brush with the 1600s") as 'tis become reality. Gold (GLD) settled out the week yesterday (Friday) at 1698 (almost kissing where 'twas a year ago in the above chart) and has now traded in tow to as low as 1683. And that low is flirtatiously close to the defined bottom of the 1789-1672 structural support zone as shown in the following chart of Gold's weekly bars:

Further infused (as a week ago mused) is the annoyance of weathering price so abused. Obviously per the graphic's rightmost declining red dots, the parabolic trend (our friend?) is Short, but as we've sassed in the past, "...with friends like that, who needs enemies..."

"Uh, mmb, are you going to also mention the deeper COVID 1704-1451 zone?"

Well clearly 'tis there, Squire, but best that we not mention it, as:

a) 'tis comprehensively nonsensical for Gold to venture much lower from here;

b) we don't want to unduly shock our valued readership; and

c) why trade lower when our forecast high for this year of 2401 means Gold trade higher?

Moreover, always maintain in mind that price historically "reverts to the mean" (if you will) of its currency-debased value (even as adjusted for the relatively wee increases in the supply of Gold) which per our opening Scoreboard today puts price at 3710. Other pop-valuation schemes of where Gold "ought be" we deem as comparatively meaningless.

Speaking of means, we've been herein wary for some time of Gold's price having traveled so far above its stalwart 300-day moving average that a technical correction was realistically in the cards: and there it starkly shows at right in the following graphic of price's daily closes across the past ten years. Such reversion to that mean now seen, 'tis time for Gold to hit the brakes whilst wresting the steering wheel into full 180° lock, let it snap back to center, pop the clutch and hit the throttle!

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