Gold’s recent push from $4,000 to $4,400 proved to be too much, too fast.
After reaching its most “overbought” reading ever, gold is back to a neutral range. (Source: Zerohedge)
Relative strength, or RSI, provides investors with a quick glance as to how much the market likes or hates a given asset. The correction is a welcome event for hard asset investors.
With the metal back under $4,000, our thesis remains untouched.
In fact, the pullback – while sharp and severe – makes gold a less expensive insurance policy against geopolitical shocks and other Grey Swan events.
Gold remains a buy.
~ Addison
P.S. This week on Grey Swan Live! we’re pivoting to the advent of Trump’s economic nationalism and US military readiness for future conflicts.
We’ll be joined by John Robb, our go-to analyst on the geopolitics of the Trump tariff strategy, the global networked intifada and the rise of drone warfare in Ukraine.
A former consultant to the military’s Joint Chiefs of Staff, Robb has a unique insight into innovations at the forefront of autonomous weapons and how they are changing geopolitical strategy. With the markets rallying on positive news of a U.S.-China trade deal today, John will identify the next global hotspots…
And some of the more attractive investment opportunities as AI and tech disrupt the traditional defense industry and its dependence on U.S. government bureaucracy.
If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.
