GOLD EYES NEW ALL TIME HIGHS !!!!

Analyzing the daily chart of gold, I am somewhat surprised by the intensity of its recent upward surge. However, given the prevailing influence of bonds on market sentiment and the concurrent decline in yields, there appeared to be limited alternative directions for gold other than upward last week. On Friday, gold exhibited a robust rally, reaching significant highs and concluding the day at a record level on the daily chart, albeit just below the actual record established in April. This situation renders the current market a bit challenging for potential entry.

While it may be tempting for bullish investors to speculate around these current levels, anticipating a breakout either today or later in the week, there is a tangible risk of a shakeout and reversal due to the crucial nature of these highs. A more prudent approach might involve waiting to observe if prices retract and establish a swing low at a more favorable price point. Alternatively, one could wait to confirm if any breakout above the all-time high transforms into a support level before reconsidering long positions.