🟡 Gold Could Face a 10–15% Correction – Risk-on Assets Set to Benefit
Over the past cycles, Gold has repeatedly shown the same behavior: after extended rallies, it tends to face sharp pullbacks in the range of 10–15%. We may be approaching another such phase.
Why?
Gold is heavily overextended against its historical averages.
Risk sentiment is shifting – investors are starting to look beyond safe havens.
Similar scenarios in past decades (post-2011, 2020) led to a reallocation of capital from Gold into higher-risk, higher-reward assets.
📉 A potential correction in Gold could act as a catalyst for a risk rotation.
And where does that money flow?
👉 Into assets with stronger upside potential: cryptocurrencies.
Crypto markets (BTC, ETH, and majors) are showing signs of resilience and are historically the biggest beneficiaries when capital rotates out of defensive assets.
⚠️ If Gold confirms a breakdown, we could witness a transfer of power from safe-haven demand to high-beta risk assets, fueling the next leg in the crypto bull cycle.
What do you think – is Gold about to repeat history?
Over the past cycles, Gold has repeatedly shown the same behavior: after extended rallies, it tends to face sharp pullbacks in the range of 10–15%. We may be approaching another such phase.
Why?
Gold is heavily overextended against its historical averages.
Risk sentiment is shifting – investors are starting to look beyond safe havens.
Similar scenarios in past decades (post-2011, 2020) led to a reallocation of capital from Gold into higher-risk, higher-reward assets.
📉 A potential correction in Gold could act as a catalyst for a risk rotation.
And where does that money flow?
👉 Into assets with stronger upside potential: cryptocurrencies.
Crypto markets (BTC, ETH, and majors) are showing signs of resilience and are historically the biggest beneficiaries when capital rotates out of defensive assets.
⚠️ If Gold confirms a breakdown, we could witness a transfer of power from safe-haven demand to high-beta risk assets, fueling the next leg in the crypto bull cycle.
What do you think – is Gold about to repeat history?
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.