Gold Bullhorns Quieted For A Day, At Least

Over in the gold patch, things went from disinterested and downright antagonistic (A Notable Lack of Interest in Gold) to sleepy (Gold “Community” Crickets) to ferociously over bullish.

Any long-time and the right-minded gold bug will tell you that the latter condition is usually a signal to prepare for some turbulence.

Wednesday and Thursday brought the turbulence in the form of a reversal and pullback for gold, silver, and the miners.

Since we became constructive on the gold sector in Q4 2018 (per the links above) the groundswell of gold boosting (pom poms and all) has steadily risen since it became obvious that something bullish was going on in January. And it appears that last week’s breakout from various daily chart bull flags in gold, silver and the miners finally jerked ’em all in. Enter the Thursday pullback.

In the very few days immediately before that $20/oz. pull back the gold “community” threw itself a gathering of the bullish clans. On just a quick look around the gold websites, some quotes popped out from 2 days before the pullback and one day before Wednesday’s reversal. It’s crickets no more…

“It’s been a long time coming so enjoy this day as there will be many more to come. It’s just getting started.” (2.19.19)

“Gold appears to be rallying from the final right shoulder in a multi-shouldered inverse H&S bull continuation pattern. Incredibly, that pattern itself appears to be just the head of a much more gargantuan pattern with a target price of $3000!” (2.19.19)

“What is going on is that gold is in the early stages of a parabolic slingshot uptrend as shown, that should soon vault it above the key resistance approaching and around $1400. Once it breaks above this resistance it is expected to accelerate dramatically.” (2.19.19)

Now, I am not going to affirm or dispute the bullish views above. The point of this article is only to note that these views are coming out of the woodwork across the “gold analyst” community. At points of max greed and max enthusiasm, the precious metals get bonked. It’s almost ritualistic. Sentimentrader has been showing gold sentiment as ‘over bullish’ for some time now and on Thursday we finally got a pullback (to the first valid support area at the top of the bull flag).

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