Hey folks,
When a trend’s moving fast, it’s tempting to think it’ll just keep going straight up forever.
But markets don’t work that way — and strong trends actually need pullbacks to stay strong.
That’s why today’s move in gold doesn’t bother me one bit.
In fact, I think it’s exactly what the gold rally needed.
Think about it:
- Gold surged 11.5% in just two weeks.
- We saw it jump from the 3,000s all the way up over 3,500
- A correction like today’s — pulling back to 3,400 or even 3,350 — gives the rally room to breathe.
Without these pauses, moves like this burn out.
But if gold consolidates here and builds a new base?
The next leg up could be even stronger.
And yes — I’m still holding firm to my longer-term view:
I think $5,000 is a real possibility for gold if this broader setup holds.
There’s another factor helping behind the scenes too:
The dollar index is below par (100) right now, meaning the U.S. dollar’s weaker compared to major world currencies.
Historically, a weaker dollar tends to push gold even higher — and we’ve been witnessing that play out.
Bottom line:
Today’s pullback isn’t the end of the gold story, it’s just the rally catching its breath — and getting ready for what’s next.
I just covered this and more in my free bi-weekly Market Radar session.
Watch the whole episode here — and don’t forget to register your spot to be notified every time I’m going live.
Stay sharp,
—Geof Smith
P.S.Take a peek at my trading plan for gold’s next leg higher!
