Sometimes 2+ 2 = 4 This sell-off in gold and silver should come as no surprise to any trader who is paying attention.
When the momentum indicators in gold and silver are way overbought, the market is ripe for a shakeout.
Chart
https://stockcharts.com/h-sc/ui?s=$GOLD&p=D&yr=0&mn=7&dy=0&id=p38632596855
RSI above 70 is a warning sign.
Money Flow Index (MFI) above 80 is another shot across the bow.
Slow Stochastics above 80 is an added blow to the short term advance.
And the COT data on Comex gold and silver futures has become even more short term bearish in the last reporting period, suggesting too much bullish sentiment in the near term.
https://www.321gold.com/cot_gold.html
https://www.321gold.com/cot_silver.html
So this sell-off is no surprise and is not evidence of an evil conspiracy against gold.
This is normal market action.
I may be wrong, but I am guessing that most of the price damage has already been done and I am looking to buy back trading positions in several stocks that I sold into the recent spike high.
goldguy