Gold was down about $150 and silver was off more than $3 on Wednesday, while US stocks and crypto plummeted. Meanwhile, Treasury yields and the Dollar Index rose. But I am encouraged by gold’s falling Bollinger bandwidth, as it enters the rough area that has previously indicated an imminent rally, explains Brien Lundin, executive editor of Gold Newsletter.
I spend a lot of time and words trying to look behind the headlines for the real story. Not Wednesday, however. The story was easy: A surprisingly hot Producer Price Index number, combined with recent attacks on Iranian oil facilities and a 5% spike in Brent crude, sent the markets reeling. There was red ink all over the place.
Gold sold off enough that it dropped below support at $5,000. The move has taken the price to the bottom of the trading range it has been confined within since the big sell-off in January.
I told a major media reporter that it seemed like we had another week or two before this indicator bottomed, if this trading range holds true. Frankly, a turn higher could come at any time – and would likely be sparked by something not found in today’s headlines.
As always, we’ll see soon enough. I would urge you to remember what I said recently — “the underlying factors that are supporting this bull run are decades in the making and will not be derailed.” Make sure you are fully prepared and positioned for the next leg of gold’s historic run.
