Gold Market Wire
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Gold Develops a Power Uptrend
May 24, 2021 - (Gold Market Wire) - Friday's close gave us a solid step up into the weekend - almost a gap, but in truth perhaps an even more powerful uptrend that looks like it is developing. The chart:
The gaps higher, on May 7 and 17 were followed by solid consolidations that, when strung together really appear as a new power uptrend. We've stopped right at horizontal resistance, and truthfully, the market looks ready to move ahead even further. These are heady developments , no doubt, and without appearing to rashly rush to judgement, it looks like we are setting the stage for another run toward $2,000.
The 50-day/100-day moving average looks like it is getting ready to cross, and that would indeed be a powerful development; one which could send Gold sharply higher. The last time we made such a crossover, we got a rally of real significance, as the chart below shows.
It's tough not to see these developments as highly bullish, and while we are always ones to counsel caution, here at GMW, we must also acknowledge the set-up. The slow stochastic is high for a rallying position, but it can stay that way for a fair amount of time before a sell-off develops. The last time we got a protracted stochastic high, we moved a solid $350 higher - so its not like there isn't a precedent.
Lastly, we must acknowledge the fact that the Anglo-American political world is now in real turmoil. The Biden administration seems to have very little broad support, if in fact it ever did, while the UK is becoming a properly divided country, both within England, and across the UK itself. These are truly historic developments. As such, confidence in the status quo is rapidly collapsing. Texas and Florida look like the rump of a break-away nation in embryonic form, while the NorthEast of the USA and Chicago look like they are facing political eclipse. Who can have envisioned such dramatic events, just a couple years ago? These developments are not without repercussions in the world financial and commodity markets. A world in turmoil is and will be reflected in Precious Metals prices - make no doubt. The problems besetting the Western world cannot be craftily unpicked, and will be 'resolved' only through further trials and tribulations. We are at a historic juncture of grave proportions. Gold and Silver, especially now in physical form, will be sought by a wider segment of the population. Gold and Silver feed on public insecurity of existential survival. We have that in spades right now.