#Gold - A DEEP DIVE: TARGETS AND BUY ZONES;
Gold had a massive run up of 209% in just over 2 years peaking in January of this year. We are currently down 23% form that peak (chart 1) and I still expect more downside.
I was talking about the targets I'll share now when we were above $5400 so this is not hindsight and people called me crazy. I could still be wrong but after the sell off on Friday people have been asking me about targets so thought I would share my thoughts;
1) A BIT OF HISTORICAL CONTEXT (chart 2); Gold has had these runs before. In the late 70s it ran up 740% in just over 3 years before correcting 64%. Around 2010 it ran up 173% in 3 years and corrected 45%. So the 23% correction currently is not a big pull back. This also applies to almost any other asset that has a 200% run up. They almost always pull back at least 50%.
2) BUT ITS DIFFERENT NOW: That's what the gold bulls and speculators keep telling me and was the reason I was so wrong at 5400 when I said I was shorting. I have heard 'its different this time' so many times across all markets. And maybe this time it will be. But until I am proven wrong, Ill stick with 'it's not different. Yes, gold is limited supply. Yes fiat is debasing and record speed. Yes, central banks are buying. Yes, I believe you know someone in another country that paid over the odds for physical gold because there was a gold rush. BUT markets are driven on fear and greed. The bull run starts because the fundamentals stack up (and I 100% agree the fundamentals are great - see point 4). But it accelerates and tops because speculation and FOMO believe it can't go down and they buy in levered up and crazy prices.
3) MY TARGETS: So for now, I think we have more downside. We have just broken (not confirmed) below $4380 and next support would be $4098. I feel it has to pierce 4000 to take all the liquidity built up there and just below 4000 there is support at $3915. That is my MINIMUM target and I may buy there for a bounce. Thats the first area I would consider a bottom could form (not my base case for the bottom though).
A 50% retrace which would be normal would be 3700 but there isn't a lot of support between 3900 and my main target at 3400. The zone between 3200-3430 is a MASSIVE area and thats where I would be buying in a big way for the long term as well as short term;
3430 - horizontal support
3345 - point of control of most of the run up (see chart 4)
3250 - 0.618 retrace
So to be clear, I think it is likely this comes down to 3400, but I will consider a bottom is possible from 3900 or lower.
$Gold #metals #trading
I hope this helps. I you read as far as hear, thank you. And please like and share the post if you can. It helps my posts reach a wider audience.
@AvanTepec@NoVive_Socialis rescata imprimiendo dinero cada vez que hay una crisis, pasándole la factura de la inflación a los más pobres. El Banco Central no existe para 'educarnos', existe para financiar el déficit de los políticos. Ya aceptaste la teoría económica, dejar de defender a tu propio carcelero
@AvanTepec@NoVive_Socialis Dando libertad de elección. Se sale del círculo vicioso eliminando el 'curso forzoso' y permitiendo la libre competencia de divisas. Cuando a la gente se le permite ahorrar y comerciar en monedas que los políticos no pueden imprimir a su antojo (activos duros, otras divisas,
@AvanTepec@NoVive_Socialis vender'... sí, se llama intercambio voluntario, justo lo que el Estado prohíbe en el sistema monetario al obligarte por ley a usar su moneda. Te respondo cómo se arregla hoy: libre competencia de divisas y fin del curso forzoso. Ha sido un placer educarte.
@AvanTepec@NoVive_Socialis La clásica retirada: 'te doy la razón pero es porque solo quieres tenerla'. No evadí nada, te expliqué que los impuestos financian al Estado, que China se salvó gracias al mercado y que el Banco Central es estatismo puro. Preguntas si las herramientas capitalistas son 'comprar y
@AvanTepec@NoVive_Socialis y prohíbe la competencia.
3. ¿Cómo lo evitas? Eliminando las leyes de curso forzoso. Dejando que la gente elija qué moneda usar (banca libre, oro, cripto) en lugar de imponer por ley el fiat estatal que se devalúa.
@AvanTepec@NoVive_Socialis 3. ¿Cómo existe el Estado sin imprimir dinero? Como lo hizo durante milenios: recaudando IMPUESTOS. Imprimir dinero es solo el impuesto invisible (inflación) que usan los políticos cobardes para financiar su déficit sin asumir el costo político de subirte los impuestos de frente.
@AvanTepec@NoVive_Socialis No existe un país 100% libre de intervención, igual que no existe la salud 100% perfecta. Pero sabemos qué enferma al paciente: el intervencionismo, la impresión de dinero y el rescate a corporaciones. Justamente todo lo que tú confundías con capitalismo
@AvanTepec@NoVive_Socialis No, no lo eres. Tienes libertad de comercio controlada, pero monopolio monetario. Trata de rechazar la moneda del Estado para pagar tus impuestos y me cuentas qué tan libre eres.
Lo del 'mercado prístino' es la falacia del Nirvana.
@AvanTepec@NoVive_Socialis capitalismo. No hay mucho más que discutir si decides ver solo la superficie y no los mecanismos económicos que la componen.
@AvanTepec@NoVive_Socialis Si decides ignorar la distinción entre el libre mercado y la planificación central basándote en que 'así funcionan hoy', estás renunciando a entender cómo mejorar el sistema. La realidad es que el Banco Central es una distorsión impuesta, no una característica intrínseca del