Gold Upleg Still Running

May 01, 2023

by Adam Hamilton Zeal LLC

Gold has carved an impressive upleg over this past half-year, powering dramatically higher. But in April that mostly stalled out, leaving the yellow metal drifting sideways. That high consolidation has frustrated plenty of traders, leaving them worried this upleg is failing. But odds are gold is simply regrouping ahead of its next surge to new heights. The majority of major gold uplegs’ typical buying firepower has yet to be spent.

Even if this upleg did give up its ghost here, gold could walk off the field proud. From late September to mid-April, gold blasted up 25.7% in just 6.5 months! This upleg is already gold’s biggest since mid-2020, besting 13.5% and 18.9% ones in 2021 and 2022. Both of those were artificially truncated by extreme Fed hawkishness, which unleashed massive gold-futures selling. 2023’s specimen has easily surpassed those.