Howdy folks,
Gold futures hit a new high today at $2,906, but just like clockwork, they’ve pulled back off that level.
If you’ve been following my updates, you already know gold futures have a habit of hesitating around these century marks — $2,700, $2,800, and at least so far today, $2.900.
We’ve seen this pattern play out time and again: Gold pushes higher, tags a century mark, and then stalls or pulls back before its next move.
So the big question now: Will $2,900 hold as resistance, or is this just a temporary pause before gold takes off again?
The Bigger Picture
While gold has been grabbing headlines, the S&P 500 is only 100 points from an all-time high. Not bad for a market that’s been called choppy, shaky, uncertain and everything in between.
But here’s the story… for the last three months, it hasn’t really gone anywhere.
The market’s been chewing and chopping around, showing plenty of volatility but no real direction.
That’s a sign that traders are hesitant, waiting for a catalyst to push the market decisively one way or the other.
And with big tech earnings rolling in and more Fed moves ahead, we might not have to wait long for that catalyst.
What to Watch Next
For gold, keep an eye on how it reacts around $2,900. A clean break above could send it marching toward the next psychological level at $3,000.
But if it struggles here, we could see another pullback before the next leg higher.
As for the S&P 500, watch for whether it finally breaks out or keeps chopping sideways.
The high on the S&P futures (ticker /ES) was made back in mid-December at 6163.75.
The market’s been building up energy for months — and eventually it could make a move. The hardest part — when — is anybody’s guess.
Stay sharp,
—Geof Smith
