Gold Topping Process – Part Two – 09/12/24

The 09/05//24 blog “Gold Topping Process – 09/05/24” noted “Gold in U.S. dollars could soon make a new all – time high in the area of 2,540 to 2,550”.

Today 09/12/24 Gold in U.S. dollars (XAUUSD) made a new all-time high at 2.560.16.

The weekly Gold chart courtesy of Trading View updates the long-term action.

Gold is marginally above the long-term trendline connecting the March 2022 and August 2024 peaks.  Both lines of Stochastic are in the overbought zone above 80.00.  Weekly RSI and MACD both have significant bearish divergences.

The daily Gold chart zooms in on the short-term action.

Gold is marginally above the trendline connecting the April and August tops.

The upper line of Stochastic has reached the overbought zone.

Daily RSI and MACD both have significant bearish divergences.

The daily Gold and Silver charts examines their relationship.

In a sustained bull market both metals normally make new highs together.  Since May Silver has an upside under performance vs Gold.   If both begin a new bear trend Silver is likely to lead the way down.

In addition to the price and momentum evidence of a potential Gold peak, the 09/05/24 blog illustrated that Gold Commercials have their highest net short position since Gold’s top in March 2022.

This is a summary of the bearish Gold evidence. 

Gold near long and short – term rising trendlines.

Long and short – term bearish momentum divergences.

Silver bearish divergence vs. Gold.

The sentiment is bearish – Gold Commercials large net short position.

Gold in U.S. dollars could be on the cusp of a multi month decline.