Gold’s Rally Faces Potential 60% Correction, Analyst Warns of “Obsession”
DUBAI – A prominent financial advisor is cautioning investors that gold‘s recent surge might potentially be nearing its end, predicting a potential correction of up to 60% based on technical analysis. Counselor Omar Jassim Al Sayyah, along with Doctor Saleh, warns that widespread public interest in gold is a key indicator the rally is losing its exclusivity and approaching a peak.
“The obsession that I see among the common people… about financial and investment plans in gold has begun to frighten me personally,” Al Sayyah stated. “The prospect is an opportunity as long as not everyone knows it, and once everyone knows it, it is essentially over.”
Technical analysis, detailed in a recent report, points to several warning signs. According to the NDM model, gold could experience a significant decline. Specifically, analysis suggests a potential drop to the $3,700 level at a minimum. The report also highlights that the market is likely in the final stage of its fifth wave, necessitating a correction.
Breaking the $4,000 level with a closing price, the analysis states, would likely trigger a move towards the $3,700-$3,800 range, which is identified as a potential buying opportunity. Volume concentration at $3700 further supports this prediction.
Doctor Saleh emphasizes the importance of statistical analysis, stating, “An economist is worthless without statistics.” He notes gold’s standard deviation is $250, but anticipates potential daily movements of up to $500, indicating increased volatility. The DOW model corroborates the correction forecast, suggesting a break of $4000 will initiate a decline towards $3700.
al Sayyah advises caution, urging investors to be wary when they observe broad public demand for an asset. He is increasingly exploring option metals as a result of the growing gold “obsession.” Investors can follow Al Sayyah’s analysis and recommendations on X (formerly Twitter) at @Omarsyyah.
