Gold Market Ready For Next Major Upleg: 'Great Entry Point'

Technical Analyst & Author
August 24, 2021

It’s been a long time since a full Gold Market update was posted on the site because frankly it has been too boring a market, but what happened last week looks highly significant with the action in gold and silver suggesting not just a reversal from the recent downtrend but the imminent start of a major upleg in both metals.

Although we don’t often use weekly or monthly charts, they are on occasion very useful for filtering out “noise”, with the latest weekly chart for gold in particular showing a large dragonfly / hammer reversal candle, as we can on its latest 3-year chart below. Most notably this reversal candle formed exactly at a zone of strong support above the rising 200-day moving average which is coming into play beneath. 

This strongly suggests that gold’s corrective phase is over — and why shouldn’t it be considering the enormous inflation being incubated by the Fed and other Central Banks around the world, who are behind the lockdowns which are among other things designed to kill the velocity of money so that they can print vast sums of money to buy up everything without immediately triggering hyperinflation. 

There doesn’t appear to be any end in sight to the enormous money creation at least for now, which serves the purpose of accelerating wealth transfer up to the top of the pyramid, so it seems very unlikely that we will see a repeat of the March 2020 crash over the short to medium-term.

If gold takes off higher to begin a major new upleg, then it follows that gold and silver stocks should do likewise, and we can see on the latest 3-year weekly chart for GDX that it is position to do just that. The setup looks very similar to that for gold itself and therefore no further discussion is necessary, save to say that this looks like a great entry point for the sector.

What about gold’s COTs – are they conducive to a rally? On gold’s latest COT chart we can see that Commercial short positions and Large Spec long positions are at their lowest levels for at least a year (jointly with a date in April) which shows lack of interest that typically precedes a rally.

What about the dollar – could it “throw a spanner in the works?” We have already observed that a potential Double Bottom is forming in the dollar index, but the pattern could simply be a zone of consolidation ahead of renewed decline – for us to become more concerned about a significant dollar rally it would have to break above the resistance right above where it is now – and it might not fare better at that than Joe Biden trying to climb the steps of an aircraft.

It is hard to factor in precisely what impact the major crisis caused by the New World Order’s global power grab and planned genocide will have on the prices of gold and silver, although whatever happens, their intrinsic value can never be diminished. Here are a couple of most illuminating videos about this that you should spread far and wide, Dr Zelenko Exposes Global Genocide Event and Hospitals Murdering People with lawyer Thomas Renz. The New World Order are a satanic cult as evidenced by their attacks on children by forcing them to wear masks all day and attempting to force vaccinate them, which is only possible because their weak parents fail to defend them.

Lastly and on a slightly lighter note, since there is humor to be found even in the grimmest of situations, we end with the musical video Twisted Vaccinator.

Disclosure
1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
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Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

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Clive Maund

Clive P. Maund’s interest in markets started when, as an aimless youth searching for direction in his mid-20’s, he inherited some money. Unfortunately it was not enough to live a utopian lifestyle as a playboy or retire very young. Therefore on the advice of his brother, he bought a load of British Petroleum stock, which promptly went up 20% in the space of a few weeks. Clive sold them at the top…which really fired his imagination. The prospect of being able to buy securities and sell them later at a higher price, and make money for doing little or no work was most attractive – and so the quest began, especially as he had been further stoked up by watching from the sidelines with a mixture of fascination and envy as fortunes were made in the roaring gold and silver bull market of the late 70’s.

Clive furthered his education in Technical Analysis or charting by ordering various good books from the US and by applying what he learned at work on an everyday basis. He also obtained the UK Society of Technical Analysts’ Diploma.

The years following 2005 saw the boom phase of the Gold and Silver bull market, until they peaked in late 2011. While there is ongoing debate about whether that was the final high, it is not believed to be because of the continuing global debasement of fiat currency. The bear market since 2011 is viewed as being very similar to the 2-year reaction in the mid-70’s, which was preceded by a powerful advance and was followed by a gigantic parabolic price ramp. Moreover, Precious Metals should come back into their own when the various asset bubbles elsewhere burst, which looks set to happen anytime soon.

Visit Clive at his website: CliveMaund.com

Gold is using for heat dissipation in some cars.

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