Gold Testing All Time Highs. New High in AU$ Gold. Gold ETFS Bond Rally Continues
Barry Dawes of Martin Place Securities takes a look at multiple charts in the Gold sector to tell you where he believes it is headed.
Gold Yesterday
Close examination of gold action in the past 24 hours. Short spike not apparent in Kitco intraday chart.
A ~US$60 in 2-hour move in goldNew all-time highs in US$
That US$100 intraday move is coming!
Gold Testing All Time Highs. New High in AU$ Gold. Gold ETFS Bond Rally Continues
A ~US$45 in 4-hour move in goldClose to all-time highs in US$
Key Points
GoldAbout to test all-time highs~US$45 in just four hoursExceeds April highsBreaking out of the boxNew all-time highs in most currenciesETFs are now accumulating gold after a 30moz reduction in 2022Nth Am Gold stocks continue higherWedge already breached to the upsideXAU heading for 165ASX Gold Stocks break through wedge and gap higherBig picture technicals setting up powerfullyShort-term wedging pattern is very bullish.Small developers outstanding valueU.S. BondsBond prices higherYields falling sharply10-year gapped downHeading much lowerGold
So many drivers for gold to move higher.
War mongering in UkraineWar mongering around TaiwanGlobal budget deficitsCurrency concernsInflationPeak government arrivingChoose your favorite issue.
Supply and demand within ETFs are now working in gold's favor after a year of selling pressure. The technicals for gold are very strong. Higher gold prices after market close will make most of these charts outdated, but the direction is definitely up.
Out-of-the-box move coming very soonAfter market close, action may have already broken thisNew highs imminentThis is a massive base that will propel gold far into space.
The following graphic from Goldchartsrus.com is the 30moz reduction in holdings by ETFs etc, since early 2022.
The major thesis here is that this rundown reverses very quickly and, in the 2020 run-up, added 100moz in less than a year. Will we be seeing this repeated and more in 2023 and beyond?
So far, gold has been rising, yet the holdings have continued to decline. It has only just started rebuilding.
Short Term Down Trend Is Broken
Surging now after backtestingWave 3Should now start to really moveExceeded April highs after trading hours
Gold Stocks
Up >3% as index breaks wedgeIn wave 3Zone of maximum accelerationNext stop 165 on the XAU
Long-term gives >100% upside in XAU
ASX Gold Index
Need to keep repeating the big picture here
Coming to the end of this 20-year formation12-year pattern being resolved3-year pattern being resolved3-week wedge resolvedPrices now gap higherThis big picture supports a MASSIVE rise in the XGD.
This short-term wedge resolved higher and breakaway gap established.
U.S. Bonds
A big rally is still setting up.
Yields To Fall
Yields gapped down hereSigns of a strong move
Timing is everything.
Heed the markets, not the commentators.
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Important Disclosures:
1) Barry Dawes: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: My company, has a consulting relationship with: None.
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