Gold Breaks Market Structure to Move Higher

That did not take long. Only a day after Trumps inauguration as the 47th US President and just 5 days after I pointed out that the Gold Consolidation Approaches Decision Point it has broken the weak structure that was forming and moved higher with some modest momentum - which I think is important for context.

Source

You can see from the chart that the Gold price did meet some Resistance at the horizontal $2715 line and it did put in a red candle initially before making a green Doji Candle and then moving confidently higher. I personally see this as a fairly Bullish development and while there is a risk of this being a False Breakout I am confident enough today to make an adjustment to my portfolio and add some Paper Gold back in.

It's likely that the last 3 months has just been a short consolidation with the recent Bull Market in precious metals ready to resume. With a peace deal struck in the middle east and optimism for peace in Ukraine there are some tailwinds for precious metals that are falling away. One might reasonably expect that the Oil price will start to drop too and along with inflation these are other tailwinds we might see drop. However, the US (and global) debt is still a massive problem and I don't see it getting solved any time soon.

Of course we will have to wait and see how Trump handles the worlds leading economy in the years to come, but for now Mr Market is suggesting that Gold is going to have a big role to play in the near term. Buckle up and grab some popcorn because 2025 could be a remarkable year.