Dr. Mark Thornton: Has Gold Bottomed? Why it Fell, Key Price Drivers Now

This talk about gold "bottoming" because of the Iran situation is a misdirection. Gold didn't collapse; it simply pulled back from an all-time high after a massive run. Geopolitical premiums are always temporary, and anyone focused on that missed the underlying fundamentals driving gold since last fall. The real story isn't a bottom; it's a consolidation above previous resistance levels as the market digests recent gains.

Gold hit a record 2448.80 just a month ago. It was already in a strong uptrend before the latest Middle East headlines spiked the spot. The current spot at 4676.72 is still well above its breakout level around 2070 earlier this year. This isn't a "bottoming" event; it's profit-taking and the unwinding of short-term speculative contracts from those who jumped in on the headlines, not a fundamental collapse. Central bank demand isn't stopping, and sovereign debt isn't shrinking.

Keep your eyes on the long game. Forget the noise about temporary geopolitical events or whether a recent pullback marks a "bottom." Watch the central bank balance sheets and the relentless march of inflation. Opportunities like this for your stack are still based on monetary debasement, not fleeting headlines.