Gold dips present buying opportunities
The host argued that the medium-to-long term fundamentals for gold remain highly bullish, and recent short-term corrections have cleared out overbought conditions to set up the next major leg higher.
The argument
The host noted that the Trump administration's bold policies will likely encourage global central banks to continue diversifying out of US Treasuries into gold. Although scheduled Bloomberg Commodity Index rebalancing could cause short-term technical selling pressure through mid-January, the host views any further dips as buying opportunities.
The thesis, stress-tested
✓ What validates it
- ✓Gold price stabilizes and moves higher after the January 15 index rebalancing period
- ✓Central bank gold purchasing data shows continued accumulation
▸ Risks discussed
- ▸Forced selling from funds tracking the Bloomberg Commodity Index could temporarily push prices lower through January 15
Hear it yourself
"I think the next few months could easily be choppy because we don't have enough accumulated good news from the perspective of each of these six key macrocycles, namely the five that aren't the positioning cycle, to cause the markets to, you know, make us a meaningful move higher over a short to medium term time horizon."
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