Gold Could Plunge to $3,600 If This Critical Level Breaks

Wealthion • 4 days ago

Original source

What This Video Is About

The Golds Show features a discussion between Megan King Diaz and Trey Reich on the gold market, addressing whether the gold bull market is over and factors influencing gold's price.

Major Ideas Discussed

  • Trey Reich believes the gold bull market is not over, citing anti-dollar sentiment, the US deficit, and Fed credibility as supportive fundamentals.
  • Recent geopolitical events, such as the election in Brazil and social unrest in France, also support the case for gold.
  • Trey discusses technical analysis, noting that while he is not a technician, many people trade gold based on technical levels, with $4,000 being a significant level.
  • Gold is argued to be not an effective hedge against CPI inflation but rather against monetary inflation, with the current focus on CPI inflation being misplaced.
  • The AI and growth sectors' recent price movements could be attributed to investors selling gold to cover losses, with Trey viewing the AI buildout as a potential misallocation of capital.
  • Retail investors are currently paralyzed, while smarter money is taking advantage of current prices, making it a good time to build a position in gold for those with a long-term perspective.
  • The next significant movement in gold will be Fed-related, specifically when the market recognizes the Fed's inability to raise rates as expected due to liquidity issues.

What to Watch Next

Viewers should monitor Fed actions, liquidity issues, and their impact on treasury markets, as well as the performance of gold stocks, which are only down 29% despite gold being down 25% from its recent highs.