Gold is breaking new highs, although daily chart technicals appear overbought now.
But what does Gold's rally suggest?
Is Gold's rally an ominous precursor of adversity ahead? We had a similar sharp gold rally in late 2019 up until Feb2020 just before the Covid crash, and we had a similar run up in mid to late 2007 leading into 2008 GFC.
Basically what I am saying is that a Gold rally at the point of extreme equity market exuberance and all time highs is sending a message that not all is well.
Could it be a precursor of
1. a US banking crisis?
2. a US/global recession?
3. a major weakening in the US dollar ahead?
4. a preemptive move ahead of geopolitical turmoil?
5. OR All of the Above?
Gold has become worthy of accumulation now IMO, gold stocks will do well in tandem but as I said before, if an equity market collapse is in the offing, gold equities will be deemed equities and not spared the collapse.
