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New all-time high is in

Gold skyrocketed past $2,140 only a few minutes after the futures market opened. Unfortunately, however, the rally was not sustained, and shiny metal erased nearly all of its gains by the European morning; in fact, at some point, it traded as low as $2,057.89 per troy ounce. While the overnight price action was, once again, pretty impressive (and despite us loving to see gold rising), this situation also makes us worry about the overall market's health. Over the past two months, gold and Bitcoin began to move by leaps, with increasingly more and more people betting on the FED cutting interest rates in the first quarter of 2024; yet, in our opinion, we will not see that, at least not in the first half of next year (unless the FED is forced to cut due to a crashing stock market). As a result, disappointment among investors can lead to volatile repricing across various asset classes, including gold and crypto. Our long-term bullish outlook remains unchanged. But at the same time, we are wary that the potential weakness in the stock market can quickly translate into weakness in gold. Therefore, we are approaching the current period in the markets very carefully.

Illustration 1.01

Illustration 1.01 shows the weekly graph of XAUUSD. The yellow arrow indicates a bullish breakout above the previous all-time highs.

Illustration 1.02

Illustration 1.02 displays the 1-minute chart of XAUUSD. The yellow arrow indicates a futures market open.

Technical analysis
Daily = Bullish
Weekly = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.