Gold-Dip Wary But The Picture Stays Merry

Now just stay calm out there despite our starting with the following table which is internally-generated at the close of each trading day:

"But how can that be?"

Your query reflects that of thousands, as answered in the following graphic's left-hand panel:

Those of course are the daily trading bars of Gold across the last three months-to-date along with the "Baby Blues" which denote the day-to-day consistency of price's 21-day linear regression trend. And when the blue dots fall below their +80% axis as has just happened (per the red encircled dot), a "sell" signal is generated in the table as shown. That is the technical rule to subjectively regard given the fundamental exception, which is fancy-talk for "it works most of the time".

To wit, we had a like "Baby Blues" dip in early July, price succumbing but then quickly recovering given at long-last a fundamental awakening to Gold's being vastly undervalued by any and all of the 3Ds of Debasement, Debt and Derivatives, further exacerbated Friday with unsettling tariff tweets, Fedspeak and $Trillion Sprees, (speaking of "D"s). For just as Gold 1526 -- the key price resistor we herein detailed a week ago -- clearly was capping the multi-month up run, Friday's "power bar" rise to 1540 nearly printed a new high for this year (1546 on 13 August), the week settling out at 1537 for a net gain from the prior Friday of 13 points (+0.9%). And given our wariness, should Gold dip a bit, per the above right-hand panel, the key trading supporters in the 10-day Market Profile are denoted as 1524 and 1513.

Nonetheless, splendidly adding to the rah-rah for Gold came the regal Mark Mobius presciently telling Bloomberg earlier in the week that:

 "I think you have to be buying at any level, frankly, I think Gold's long-term prospect is up, up and up and the reason why I say that is money supply is up, up and up; you know with efforts by the central banks to lower interest rates they're going to be printing like crazy."

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