THE GOLD SQUEEZE: Zero Offer, the Chinese Dragon and the Iminent "Consolidation Armadillo"

[Igor Pereira]

Traders, we are facing a statistical anomaly in the Gold market (XAU/USD) that will separate professionals from amateurs in the coming months.

By Igor Pereira Financial Market Analyst

While the long-term macroeconomic foundations have never been stronger, institutional signals point out that a violent and prolonged pause is about to test the retail psychological. Below, we dissected Bravos Research data on the global supply shock and why the Smart Money He's preparing for a long consolidation.

The main engine of the structural high of gold lies in a simple mathematical equation: extreme scarcity versus trillionaire institutional demand.

• The Mining Dryer: The pace of new gold discoveries globally slowed considerably since the 1990s. Even more alarming: in the last two years, the new discoveries have reached zero. According to the data, this has never happened before in history.

• The Accumulator Dragon: Despite being the second most powerful institution in the world, the Central Bank of China still has gold reserves that, as a proportion of total reserves, remain very low when compared to the US.

• The Squeeze Scenario: If China decides to raise its gold stakes to 20% to 30% of its reserves, this movement alone would squeeze a market that is already with scarce supply today.

• The long-term verdict: We are living in a situation where there is a record demand for gold combined with an extremely restricted offer. The forces that have driven gold in recent years must persist.

Despite the undeniable high structural scenario, the market does not go up straight, and this is where retail loses money.

• Retail Error: Just because the long term is lofty, that doesn't mean that retail investors are right to buy purchase options (call options) now to bet that the shooting of gold will continue without interruption.

• The Historical Pattern: Historically, large high markets (bull markets) of gold have high violent movements for some years, which are followed by long periods of consolidation.

• The Institutional Forecast: The analysis indicates that gold is likely to be approaching a consolidation phase that can last months, before the wider high structural market is resumed. This is exactly why gold, at this very moment, is not part of the three largest opportunities for investment seen in the market.

The market is warning: the "easy and fast money" party in Gold is paused so that the institutionals can recharge their lots.

My Vision: The exhaustion of new discoveries (offer zero) ensures that the gold floor is armored, but technical exhaustion will require patience.

1. Avoid Leverage: Buying short-term options or operating hyperalavanated is now financial suicide. Consolidation serves precisely to melt the prize of options and hunt the stops Who's overcrowded.

2. Accumulation Mentality: Use these "months of consolidation" predicted to make fractional contributions in the institutional discount zones we mapped in the weekly charts.

---

Premium access: The Consolidation Map

If Gold's gonna go sideways for months, the key is to buy on the lower limits of this institutional box. In the ExpertFX Member Area, we are updating today the Range designed for this long-term consolidation, marking exactly the levels of "Hidden Support" where China and Central Banks will make their next billion-dollar contributions.

Don't be swallowed by lateralization. Ensure your place in the elite market, enter the PREMIUM.