After a meteoric rise, gold has dropped 10% from its all-time high. Headlines are scrambling to explain the moves, but as our recent Short Term Update noted,
“It seems like all of a sudden everyone’s an expert on [Gold]. It’s the debasement trade, it’s the government shutdown, it’s the tariffs, it’s inflation, it’s deflation, it’s the calls for a Fed governor to resign, it’s an anti-bitcoin, it’s the same as bitcoin…wow. The truth is like any freely traded asset, gold traces out waves that are created by investors who herd. In the aggregate, they become more optimistic in a patterned way as the trend rises and more pessimistic in a patterned way when the trend declines. The explanations in the media as to why gold is going up and down are rationalizations of an emotionally based decision as to whether to buy or sell.”
Before the latest drop, our October 20 Short Term Update calmly told subscribers:
“The developing [Elliott wave] pattern is at or very near the top… which means an impending decline.”
Now the big question is: Is the correction over — or just beginning?
See what our latest Elliott wave analysis forecasts for gold now.
