$2,000+ Gold Shocks the "Experts"

Brien Lundin Brien Lundin

Brien Lundin

November 27th, 2023 Comments

Just before last week’s Thanksgiving holiday here in the U.S., gold was poised just below the key $2,000 level.

In fact, it was trading right at $1,999, which prompted me to post this on Twitter/X:

Brien Lundin Tweet/X: Gold Chart

Dad jokes aside, there was really no reason to party. That’s because $2,000 is one of the truly “big” numbers — extremely important both technically and psychologically.

Gold’s been here before, at $2,000... above it... and back down again.

So $1,999 was no great achievement. We’d need to clear $2,000 well and good, and keep going, before gold bugs could safely put on their party hats.

Befuddling the Experts

All this said, it didn’t take long to change things. In abbreviated trading on Friday, gold jumped a few dollars above the key $2,000 mark.

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While that excited gold bugs, it didn’t shake the entrenched bearishness of mainstream analysts.

In fact, I was struck by an industry-focused article quoting predictions from a number of Wall Street “experts” that gold’s rally would go no further.

Here’s one example:

"Our economists only expect the first rate cut to be implemented in the middle of next year, so only then is the price of a troy ounce of gold likely to climb lastingly above $2,000," said Commerzbank commodity analyst Barbara Lambrecht in a note Friday.

Again, gold didn’t take long to make them look stupid.

In fact, it soared to $2,017 in early trading today, before the typical early-New York slam erased about half of the gains.

As I write, gold’s trading right at the next resistance level between $2,010 to $2,020, up over $10.00.

Interestingly, while some of today’s mainstream commentaries are begrudgingly acknowledging gold’s gains, they are crediting this to a weak dollar. However, the Dollar Index is essentially flat today.

You’d think they would’ve checked before coming up with such a simple claim.

Frankly, I find that the vast majority of talking heads and market pundits are completely missing the factors behind gold’s current rally... and the powerfully bullish fundamentals arguing for much higher prices over the months to come.

Brien Lundin

About the Author:

Brien Lundin is the publisher and editor of Gold Newsletter, the publication that has been the cornerstone of precious metals advisories since 1971.  Mr. Lundin covers not only resource stocks but also the entire world of investing. He also hosts the annual New Orleans Investment Conference. To get Brien Lundin’s ongoing commentary on the markets at no charge, click here to subscribe to his free Golden Opportunities newsletter.