Looking at gold from a daily chart perspective can give us an alternate opinion, especially if we are looking at a potential Head&Shoulder pattern. I just labeled the “Head” while the right shoulder is still declining.
If this picture in gold is really a bullish pattern then, the right shoulder would have to blast much higher and not stop! Of course, if the 5 wave sequence is close to reality then this decline will keep right on going taking out the $1160 price level.
Gold has a track record of crashing $$180-$200 in any bullish or bearish situation so any price below $1150 would certainly qualify.
The 200-day MA is down at the $1250 price level, but gold would have to travel much further before the death cross on this daily chart happens.
The death cross is much closer in the weekly and monthly charts than it is on this daily chart.
The commercial hedgers are in a very bearish funk as this is a strong net short position. With these numbers, it’s pretty hard for gold to soar to the moon again. This Friday is a full moon so short term, gold could turn bullish.
When gold soars due to safe-haven buying, then these moves never last very long as it’s all based on the emotion of “Fear”.
Silver and gold can and do move together, but they do so under different patterns. In short, the overall bullish pattern in gold is painting us a false scenario, which silver and gold stock ETFs do not confirm. Just because an asset class goes up does not mean it’s in a real bull market. Bear market rallies can last for years before they implode again.