Gold could take a hit tomorrow, post-brexit poles, and if it does, it could be potentially massive.
What we have have seen over the course of the past couple months in this gold consolidatory bull flag formation is the highest number of
speculative buying since the 2011 gold highs, and the commercial hedgers have built up record short positions in gold. That doesn't mean much on its own until you take into account that physical demand for gold has been falling in India and elsewhere and it's only the speculative paper demand that is rocketing higher.
Early summer is a seasonally weak period for gold. The speculative call option buying
will be unwound if gold fails to rally which will exacerbate the gold
selloff even further.
Gold is particularly vulnerable at this juncture to coordinated efforts by bullion banks to push the price down knowing it will trigger an avalanche of selling by the speculative dumb money.
In any event gold tends to rally for all the wrong reasons, as desperate fringe elites like jim rikards, james turk, etc etc and all the punters you find on sites like King World News, never up for a real challenge, try to make the case for $10,000 gold so that they can line their pockets in a frenzied bid for low hanging fruit.
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