Yesterday, I wrote about the “magic” of century marks in gold futures — those “hundreds” levels like 2700, 2600, 2500, and so on.
If you’ve been following along, you’ll know that gold has a habit of hitting these levels on the way up, pulling back, and then finding its footing for the next leg higher.
And as I wrote about yesterday, it happened again.
Gold futures (/GC) hit just above 2700, only to bounce down sharply, giving back much of last week’s gains.
And right on cue, the financial media started spinning a story.
Headlines blamed everything from geopolitical developments to crude oil prices, trying to explain the move.
But here’s the thing: that’s not really the story.
Let me break it down for you.
Markets Move on Their Own Merit
Gold hit a clear resistance level at 2700 — a century mark, as I’ve called them — and the market rejected it.
That’s just how markets work. They move on their own momentum, driven by technical levels, buying pressure, and sentiment shifts. Not headlines.
But the news outlets? They need to find a narrative to fit the price action.
Headlines like “Gold Sinks as Ceasefire Nears” make for good clicks, but they don’t tell you what’s actually happening in the market.
As I’ve said before, markets often overreact to news, but that doesn’t mean the news is what caused the move.
Looking at the Bigger Picture
Take a closer look at the numbers.
On November 6, we saw a 98-point down day in gold. Yesterday’s drop? 106 points.
Sure, it was a big move, but it’s not out of character for this market.
And even with that pullback, we’re still trading 100 points above the November 14 low of $2,541.50. That’s not the kind of collapse some of these headlines would have you believe.
If you look at the chart I shared, you’ll see exactly what I mean. Gold’s resistance at 2700 was no surprise — it’s a level we’ve been watching for weeks.
The market hit it, paused, and then sold off. It’s textbook price action.
What’s Next for Gold?
As I’ve been saying all this year, every time gold has a little selloff: This pullback doesn’t change the bigger picture.
The forces that have been driving gold higher all year — inflation concerns, market uncertainty, and global demand — are still in play.
As I mentioned yesterday, for gold to get back on track, Silver Futures (/SI) and Copper Futures (/HG) need to step up.
Silver needs to clear resistance I see at $32, and copper has to get above $4.15, which it’s been having trouble with — but ideally push past $4.30 where it’s got big resistance.
For gold itself (Gold Futures, /GC), the real challenge lies in breaking through a cloud of resistance overhead between $2,745 and $2,760.
Those metals and levels need to align to give gold the boost it needs to not just clear that resistance, but also plow through and set up for its next big move higher.
Key Takeaway
Don’t let sensational headlines rattle you. Gold’s pullback was expected.
The news didn’t cause it — the market’s own technicals did.
With GDP and PCE numbers coming out tomorrow, the next move might already be in the making. Let’s see how the data plays out and where the market goes from here.
Stay patient, and as always, keep your eye on the big picture — and ignore the noise.
— Geof Smith
P.S. AI’s next key resource could see massive supply shortages under President Trump in 2025… And I think this could be the “play of the decade”!
