Further downside unlocked for GoldGold - The pendulum has swung in both directions clearing all of the soft hands.
In July 2020 we were talking about the highs cooking for a couple of years as the price was not quite ready to explode in the ways that some thought (towards 5,000-10,000 or etc).
Sure we saw a lot of institutional interest and activity levels are still high with risk leaving a damp smell in the air, however, the chart suggests that we have further downside to come. Technicals can extend as low as 1518 and still maintain the multi-year trend higher.
I am actively looking to load more gold but at a lot lower levels, and timing wise most likely not until we have seen liquidations in in Q1 2022. Until then, my near term bearish setup is in play with all eyes on 1518 - 1509. Invalidation in the view comes with a breach of 'b' in this corrective fourth wave.
