| | | | Friday I talked about how gold had pulled back from its highs of around $2,800 before the election, correcting roughly 8.5%.
I mentioned that the $2,500 level — specifically $2,521 — was a key support zone to watch. Well, here we are, just a few days later, and I’ve got an update for you: we may be seeing the end of that correction.
This morning, I’ve been keeping a close eye on the markets, and here’s what I’m watching. For gold to really get moving again, we need to see it reclaim $2,630.
That’s the level that could signal the start of another leg higher. But it’s not just about gold.
If silver gets back above $31.40 and copper climbs above $4.15, we could see a broader push across the metals market.
Now, it’s important to keep in mind that this time of year tends to be weak to flat for gold.
Historically, the market often waits until January, around the inauguration, to see what the new administration’s policies will look like.
So while we might get some movement if these key levels are reclaimed, patience is going to be critical here.
Let’s not forget the bigger picture. Last week, I talked about how gold’s correction falls right in line with what we’ve seen historically — typically, a 12–15% pullback after a big run.
We’re still in that range, and the $2,521 level I mentioned as a possible support zone has held up so far. If gold can build momentum from here, we could see it set up for its next move higher.
But remember, markets don’t move in straight lines. Sometimes, you’ve got to sit back and let the week develop before jumping in. That’s where we are right now—with the markets catching their breath after last week’s data overload.
So, here’s the game plan: keep an eye on those levels — $2,630 for gold, $31.40 for silver, and $4.15 for copper. If they start breaking higher, it might be time to pay attention. Until then, patience is the name of the game.
Let’s see how it plays out.
— Geof Smith | | | | |
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