Gold’s 7 Month Uptrend Still Intact
2023.05.31 13:51
Warren Buffet famously said to “buy when there is blood in the streets”. Whilst the cobbles aren’t a wet red yet, there are a lot of analysts that would love you to believe it is.
First off the debt ceiling debacle. It’s gone down to the wire the last few times, but there can’t be many in voting and signature positions that believe there won’t be a last-minute deal. This is posturing from both sides of the fence that won’t back down, but will meet somewhere in the middle in the hours before the deadline. The markets have wobbled, but they haven’t capitulated. Far from it.
Then there’s the data coming out saying the jobs market is still hot, isn’t as bad as first thought, but is a little bit more sticky than first thought. This you would believe enough for the widespread to accept at least another interest rate hike is ahead. Again, a wobble, but markets aren’t down. The and are actually up for the year, and is still in touching distance from the $2000/oz level despite its recent tamp down.
Gold in fact is still sitting very comfortably in a rising parallel channel when viewed on the weekly chart that started with a cycle low in October 2022.
The very essence of Warren Buffet’s contrarian views is what made him a legendary investor. In the case of Gold, it may dip when the debt ceiling is resolved, but we wouldn’t expect that dip to last long, and it is always a buying opportunity when the naysayers claim it’s going back to $1600/oz. The next few weeks should offer that opportunity in both Gold and .
