Gold faces extended correction toward key supports
The bearish technical case argued that gold has entered an accelerated distribution phase after breaking its 200-day moving average.
The argument
The speakers noted that gold is facing headwinds from higher interest rates and a rising dollar. If the Strait of Hormuz crisis remains unresolved and drags on, gold could test support levels at $3,900, $3,400, or even $3,000 by year-end.
The thesis, stress-tested
✓ What validates it
- ✓Gold breaking below the $3,900 October lows
- ✓Gold testing the $3,400 consolidation level
▸ Risks discussed
- ▸A sudden reversal in interest rates or the US dollar
- ▸Geopolitical resolution easing the broader market correction
Hear it yourself
"I could there's like seven or eight companies. They're also dumping a lot of stock at the same time. So if I look at what's happened in the last few days, it feels like, oh, we're down a lot. But, really, if I just go back to the late March low when the market initially started to freak out about the Iran conflict, We got down to, what was it, around 60 just about 6,400, a little bit below 6,400 on the S and P. If I look at the since Friday, the down move as of Wednesday afternoon, We're really only looking at I don't know. It's it's nowhere close to a 38%."
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