Yes. The ‘new gold’ broke below its rising support line, and it verified this breakdown by moving back to this line and then moving lower once again. At the same time, bitcoin invalidated its move to new highs.
Those are powerful sell signals, and since we see them while the USD Index is poised to move higher, it seems that these are the final days when one could get out of bitcoin and most (if not all) cryptocurrencies at very good prices. If you own bitcoin or cryptos, please treat this as a major red flag and a WARNING.
The prices might decline really fast when people realize what’s really going on in the USD (by reading this, you’re already well ahead of them).
Overall, it seems that taking profits from the long-term investments and from half of the insurance capital (in gold and silver) when gold was at about $4,150 and silver was above $50 was a great idea.
When the USD Index finally confirms its breakout above 100, things will get really interesting, and many USD bears will be extremely surprised by the outcome.
Speaking of monthly performance, October just ended, and we can see that we have indeed seen a powerful monthly (!) reversal in gold in the target area that I had featured on Oct. 16. This fully supports all the points that I had made above.
Summing up, gold had a magnificent run-up and so did silver, however, it seems that this rally is over. Fortunately, this creates unique opportunities.
Przemyslaw K. Radomski, CFA
Founder
Golden Meadow®
