Gold has been one of the cleanest and most powerful uptrends of this entire cycle.
It has more than doubled since breaking out of a massive base in March last year, showing how strong and sustained this trend has been.
But lately, things have gone vertical.
Euphoria has taken over the tape — everyone’s talking about it, and some are even lining up to buy physical bars.
But here’s the thing. Gold is the most extended from its 200-day moving average since 2006.
The last few times it was 25% or more above it, we saw some corrective action and a reversion to the mean.
I wouldn’t be surprised to see something similar this time.
That doesn’t mean the bull cycle is over — far from it.
Commodities tend to trend longer than most expect, and I think Gold still has plenty of upside over the long run.
But in the short term, some consolidation here would be perfectly healthy — just another pause in a much bigger trend.
These corrective waves often create better setups with more defined risk, so I’d rather watch the market digest gains, cool off, and build the next base for an even higher move.
Let me know what you think — I’d love to hear your take!
If you want deeper insights on precious metals, my friends Sam and Jason are the go-to experts. They’ve been tracking this trend closely and sharing actionable ideas along the way.
