Everyone Piled Into Gold. Then It Cracked. Now What?

Gold after the puke

Gold was screaming overbought, positioning had become extreme and the debasement crowd had piled in at exactly the wrong time. $400 later, the setup looks very different.

RSI has reset, the silver overshoot has narrowed and gold remains closely tied to the dollar. The easy part of the reversal is behind us. From here, gold is back in no man's land, and we see little edge until the next break.