Gold’s a touchy subject in the blogosphere.  I have nothing against stacking.  Holding some of the shiny metal — whether for fun, inflation protection or the coming zombie apocalypse — probably makes sense.

Most serious gold bugs will tell you that the futures and ETFs are not the real thing.  I get it.  But, it’s the GC futures we concern ourselves with, here.   With that said…

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updated: November 19, 2021

With many goldbugs calling for gold to double, we got bearish again when it reached our upside target at 1870.60 on November 10 [see: CPI: Out of Control.]

Gold is getting a big boost from the inflation data, and has now reached the purple neckline at 1870.60. I would revert to short with tight stops right here.

We didn’t give silver the hook until Nov 12 [see: Gold – Still a Good Inflation Hedge?] when it tagged our 200-DMA target. Neither metal has fallen much since then. But, the fact that they haven’t broken out in the midst of an inflation scare speaks volumes.

continued for members…Stay tuned… As I often say, central bankers are loathe to see gold and silver become a widely accepted substitute for fiat. With both at important overhead resistance, I think they’ll put the brakes on for the foreseeable future.