CUR - The Gold Breakout: Another Head Fake?
2024-03-06 10:00:45 ET
Summary
- Gold is attempting to break out to new all-time highs, but it has failed multiple times before.
- There are no valid fundamental reasons that support a sustainable gold breakout over the near term.
- It seems like gold is rising due to the spike in Bitcoin within the context of a broader speculative environment.
The breakout
Gold ( GLD ) is breaking out to the new all-time highs, from the range developing since 2020. This is the fifth time gold is trying to decisively break the 2000 level - it failed the first time in August 2020, it failed the second time in March 2022, it failed the third time in May 2023, and it failed just recently in December 2023. The price of gold is still below the December 2023 intraday high, so it's still premature to assume that the breakout will hold this time....
The Gold Breakout: Another Head Fake?