Gold Price Reaction: Key Zones To Buy

President of Graceland Investment Management
April 23, 2024

Recently, with gold, silver, and gold stocks overbought by almost every technical measurement, almost every gold investor in the West knew there had to be a pause in the action. All that was needed was a catalyst.

The April 12 margin hike announcement for Shanghai gold futures contracts was that catalyst. It capped the rally and the big question for investors is… what’s next?

For some insight into this key matter:

After a “flagpole” move higher on the weekly chart, the formation of a bull flag is a reasonable scenario.

Oscillators like RSI and Stochastics are substantially overbought. When a flag pattern forms, they often pull back the 50 zone… which can act as a launchpad for a fresh momentum-oriented surge.

This is the weekly sentiment index chart. It’s also overbought, and a gold market bull flag that takes a month or so to form would likely see the BPGDM pull back to its momentum zone of 50.

For a look at the short-term chart:

If a bull flag unfurls on the weekly chart, the most likely zone for it to end is $2220-$2150.

I suggest buying gold bullion at $2265, but for silver and gold stocks, the zone of focus is $2220-$2150.

It’s possible that gold bottoms here and resumes the rally or range trades between $2432 and $2300, but for actual buying, it’s important that investors choose prices and set-ups that offer the highest odds of success.

In a nutshell, gold (via ETFs, futures, jewellery, coins, bars, etc.) can be bought at $2265, $2220, and $2060, while silver and mining stocks are buys at $2220 and $2060.

Buy size? If gold goes to any of the buy zones, it will be important to monitor the action of the technical oscillators. Their status will help determine the size of the buys.

As noted on the chart, in the big picture, it’s all about getting more gold. 

Fiat will have surges against the world’s queen of currency, but investors are far better served by adopting the mindset of three billion Chindians… and making it their mission to get more of the ultimate currency that of course can only be gold.

In the West, investors try to use gold to make “big fiat profits”. Analysts have “long term fiat price targets” and there’s an obsession with defining “new bull & bear markets for gold”.   

The bottom line: citizens of the West (even many gold bugs) are obsessed with fiat. This, while the East yawns and gets more gold. 

The long-term target for fiat against gold is zero. It all goes off the board over time. In contrast, the long-term target for gold is best defined as one of… 

Emotional tranquility and financial peace of mind. 

A daily focus on the big picture is critical for investors as inflation, recession, the 2021-2025 war cycle, a wildly overvalued stock market, debt ceiling horror, and empire transition dominate the investing landscape. I cover this big picture 5-6 times a week in my flagship Galactic Updates newsletter. At $199/year, investors feel the price is too low, but I’m offering a $179/15mths “special offer” that investors can use to get in on the winning action and meticulous analysis. Click this link to get the offer or send me an email and I’ll get you a payment link. Thanks! 

When investors try too hard to make gold into a fiat currency slave, they tend to end up in trouble, but for a look at the dollar against other finite fiats:

The dollar is likely peaking about here. Resistance at 107 is just above the current price.

This is the important US interest rates chart. Rates are also likely peaking. Why is this big H&S top for rates forming as the Fed fails to reign in core inflation?

Well, the US stock market is likely headed for a summer peak. For decades, I’ve defined the Aug 1-Oct 31 time frame as “crash season” and this year could be particularly bad.  

The bottom line: If the stock market crashes going into the US election, the Fed will cut rates… even if inflation stays high. 

What about the miners? Gold stocks are fabulous tools to make very fast and very large fiat profits, if investors buy them at the key buy zones for gold. Of course, some of that fiat should be converted to gold.

While gold stocks are incredibly overbought on medium-term charts, on the long-term charts versus gold, they are one of the most undervalued sectors of all time… and the huge base pattern in play suggests that a sea change lies dead ahead.

Gold stocks tend to bottom at one of their support zones along with gold, but which one it will be is unknown. That’s why it’s so important to focus on the $2220-$2150 zone for gold. If gold does go there, gold stocks will almost certainly be at support of importance too… and it will time to buy!




Special Offer For Gold-Eagle Readers: Please send me an Email to [email protected] and I’ll send you my free “Get Jacked With J!” report. I highlight key GDXJ stocks that could surge after Fed man Jay’s speech this week! Both core and trading position tactics are included in the report.

Stewart Thomson

Galactic Updates

Note: We are privacy oriented. We accept cheques, credit card, and if needed, PayPal.

Written between 4am-7am. 5-6 issues per week. Emailed at aprox 9am daily


[email protected]

[email protected]

[email protected]

Rate Sheet (us funds):

Lifetime: $1299

2yr: $299 (over 500 issues)

1yr: $199 (over 250 issues)

6 mths: $129 (over 125 issues)

To pay by credit card/paypal, please click this link:

To pay by cheque, make cheque payable to “Stewart Thomson”

Mail to:

Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 Canada

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form. Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?


Stewart Thomson is president of Graceland Investment Management (Cayman) Ltd. Stewart was a very good English literature student, which helped him develop a unique way of communicating his investment ideas.  He developed the “PGEN”, which is a unique capital allocation program. It is designed to allow investors of any size to mimic the action of the banks.  Stewart owns GU Trader, which is a unique gold futures/ETF trading service, which closes out all trades by 5pm each day. High net worth individuals around the world follow Stewart on a daily basis.  Website:

One cubic foot of gold weighs more than half a ton (1,306 pounds).
Top 5 Best Gold IRA Companies

Gold Eagle twitter                Like Gold Eagle on Facebook