August 5, 2024 - (Gold Market Wire) - Overnight markets have sent shock waves through the world - with the Japanese stock market down nearly 8% at one point, from the Friday close. Bitcoin, the "anti-Gold" is down 10% on the Friday close, after a horrendous week, bringing the crypto-currency fall to nearly 20%. Civil unrest in Britain and the edge of a mid-east war between Iran and Israel, have also helped fuel the market sell-off. In such an environment, Gold's measly 1% drop is paltry by comparison, and reveals its foundational strength.

We start with Silver, as it continues to be a leading indicator.

Recently we have been warning against buying the metals, even in the midst of global geo-political chaos. Our hesitancy now appears justified. When equities get pasted, and last week's wobble was an obvious warning, the margin man calls - and everything, even Gold, gets liquidated. We had our eyes fixed, as explained, on equities as the key.

On the technical side, ultimately, it was the failure to get beyond resistance that encouraged us to wait. That, and the simple reality of a market getting way ahead of itself.

Resistance held, the uptrend failed. From there, the rest was written.

In our first chart we have marked out the $25.62 area as a place for a first, small, purchase, but further down, around $22.00 is where we start to show a bigger interest.

Once again, the old truths...'don't chase strength' and 'don't seek action'... it all adds up to patience. Even amidst the present chaos.