In my current interview on Palisades Gold Radio with Stijn Schmitz, we targeted on what I consider is without doubt one of the most vital moments traders have confronted in recent times. Valuable metals have simply gone by means of a textbook volatility cycle, a robust rally in gold and silver adopted by a pointy correction that caught many off guard. From a long run perspective, the pattern in metals nonetheless appears constructive. However within the quick time period, we’re in what I name “no man’s land.” Momentum has cooled, sentiment has shifted, and the charts are usually not but confirming the following directional transfer. That is the section the place metals both construct a correct base and launch once more, or roll over right into a deeper pullback to reset the construction. On the similar time, I stay constructive on the US greenback and see the potential for a rally, which might naturally apply stress to gold. Foreign money motion is a crucial piece of the puzzle that many traders overlook.
Equities are equally fragile proper now. The S&P 500 is clinging to its uptrend by a thread, whereas the Nasdaq is displaying early indicators of potential breakdown. I’m additionally watching capital flows, and what I see is cash rotating quietly into defensive sectors like utilities and client staples. That tells me establishments are cautious. My strategy is to not predict tops or bottoms however to observe value and respect pattern shifts. In the meanwhile, I’m holding roughly 70 p.c in money, ready for the market to tip its hand. Oil, copper, and uranium are displaying comparable consolidation patterns, suggesting {that a} broader transfer is constructing throughout asset lessons. When markets compress like this, a major enlargement normally follows. Till the charts verify route, endurance and capital preservation stay the precedence.
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