Gold Breaks Below $4,000, Is $3,600 The Next Major Level?
I joined Jeremy Szafron on Kitco News to walk through the current setup in gold, silver, the U.S. dollar, the yen, and the broader stock market. Gold has broken below $4,000 for the first time since November, and from a technical standpoint, the chart continues to point toward the $3,600 area as the level I am watching for a potential bottom and reset. While the short-term trend remains under pressure, the bigger-picture structure still supports the possibility of a much larger move over time, with long-term targets in the $8,000 to $8,600 range if the next major upside phase develops.
We also talked about why these violent swings are not necessarily caused by algorithms or manipulation, but by plain human emotion, fear, greed, panic selling, and FOMO buying. Silver continues to carry more volatility, the U.S. dollar is gaining strength, the yen is sitting near a four-decade low, and global markets are starting to look more fragile beneath the surface. I also explained why I am currently fully in cash on stocks, what I am waiting to see before becoming more aggressive again, and why one of the biggest mistakes investors make during a selloff is trying to predict the bottom instead of letting the charts, trends, and price action confirm when the risk-reward setup has improved.
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Topics that David and I discussed include:
- 00:00 He Sold Gold and Is Waiting to Buy Back
- 01:00 Is $4,000 Holding, and the Downside
- 04:30 Are the Swings Algos or Emotion?
- 06:50 The April Calls and the Discipline
- 09:40 Silver, and Where It Bottoms
- 13:00 The Dollar, the Yen, and a Fragile World
- 16:00 Is the Stock Market Next?
- 19:00 What He’s Buying Now
- 23:00 The Biggest Mistake in a Selloff
- 24:40 Summer Seasonality and the Warning Sign
Chris Vermeulen
Chief Investment Officer
TheTechnicalTraders.com
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