It's Happening Again - GOLD
When a ceiling of resistance becomes a floor of support...
Not A Gold Bug
I haven’t always been a gold bug. In fact, it wasn’t until the MASSIVE government spending during Covid that I realized gold would be going MUCH, MUCH higher.
So I started really paying attention.👀
I capitalized on it then and I will be capitalizing on it now.💲💲
Hopefully you do too.
My goal with The Tobin Report was not meant to be all about gold (and it still isn’t) but it’s hard not to focus on it when I’m faced with such a great opportunity in front of us. I try to create value for my readers where I see it.
I’m seeing an amazing, life changing setup that looks eerily similar to the GFC in 2008 and beyond.
Let’s take a look…
When A Ceiling of Resistance Becomes A Floor of Support
Gold first broke through the $2,000/oz level back in August, 2020 after an amazing runup from the $1,450 Covid low just a few months prior.
After this runup, gold sold off and gave it another attempt at $2,000/oz in March of last year. This time it was the Russia/Ukraine war fear that drove gold to this psychological level.
Now, here we are again testing $2,000…
Last week, gold briefly broke through $2,000 before consolidating just below. What’s interesting this time is that gold did NOT sell off like it did the previous times.
This time it’s consolidating just below. THIS. IS. BULLISH.🐂
Could it be that this ceiling of resistance becomes the new floor of support?
1️⃣First Covid. 2️⃣Then Russia/Ukraine. 3️⃣Now a financial crisis triggered by the fasted rate hiking cycle in history with banks failing?
👉 I think it’s time. ⌚
The circumstances are eerily similar to another time in history.
The Great Financial Crisis from 2008.
Let’s look at THAT chart.
So Similar
Hmmmmmmm….the $1,000/oz gold was the ceiling that became support!
And what triggered gold to make that move?
A financial crisis where the government stepped in and funded the shit out of everything. Spend, spend spend!
A crisis. Government spending. Dollar devaluation.
Sound familiar?
(chart below of 2009 when gold finally broke above resistance 👇)
Now let’s look see what gold did once it broke free………….. 👇
Love it. I love charts.
Caveat….
Gold could just as easily hit the $2,000 ceiling and selloff to make new lows.
I’m just not in that camp.
Hope this helps,
Eric
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