{"id":61497,"date":"2025-04-07T06:41:41","date_gmt":"2025-04-07T06:41:41","guid":{"rendered":"https:\/\/thepatientinvestor.com\/?p=61497"},"modified":"2025-04-07T06:50:00","modified_gmt":"2025-04-07T06:50:00","slug":"gold-bear-trap","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2025\/04\/07\/gold-bear-trap\/","title":{"rendered":"Gold bear trap"},"content":{"rendered":"

Gold briefly broke support at $3,000 per ounce, threatening a correction to test the support band between $2,800 and $2,850. However, strong buying drove the precious metal above the support level, displaying a long tail on today’s candlestick. A breakout above $3,050 would complete a bear trap reversal<\/a>, signaling a rally to $3,150.<\/p>\n

\"Spot<\/p>\n

According to the IMF, gold increased to 21% of official currency reserves. However, gold reserves are far below the 60% to 70% required for a viable gold-backed financial system, as in the 1960s.<\/p>\n

\"Official<\/p>\n

China’s and Saudi Arabia’s gold reserves are climbing steeply, while Western central bank holdings remain below 22,000 tonnes.<\/p>\n

\"Increase<\/p>\n

China’s actual reserves are likely higher than the official IMF figures. Jan Nieuwenhuijs at The Gold Observer<\/a> estimates that China purchased 570 tonnes of gold through unofficial channels last year, with their total holdings close to 5,000 tonnes compared to the 2,280 tonnes in official figures.<\/p>\n

Conclusion<\/h2>\n

We are long-term bullish on gold while the dollar-based global financial system weakens due to excessive government debt and steep fiscal deficits.<\/p>\n

The false break below $3,000 warns of a bear trap. Recovery above $3,050 per ounce would confirm a short-term target of $3,150.<\/p>\n

Acknowledgments<\/h4>\n