Peter Schiff Says 'Buy The Dips' — As Gold's Pullback Tests Conviction

Core Viewpoint - Gold has experienced its first significant wave of selling pressure after a strong rally, with Peter Schiff advising investors to "buy the dips" as the market transitions from a momentum-driven breakout to a support-level test [1][4]. Group 1: Market Indicators - The Relative Strength Index (RSI) has decreased to 52 from overbought levels above 70 earlier in the month, indicating a neutral market where buyers and sellers are balanced [1]. - The Moving Average Convergence/Divergence (MACD) indicator has turned negative, signaling a weakening of upside momentum in the near term [2]. Group 2: Support Levels - Despite the recent pullback, gold's overall uptrend remains intact, with GLD holding above its 50-day moving average at $425.79 and its 200-day moving average at $355.54, which are critical structural support levels [3]. - GLD is also above its lower Bollinger Band near $424.86, a level that typically serves as technical support during bull market consolidations [3]. Group 3: Market Sentiment - Schiff's recommendation to buy on dips reflects a belief that the current pullback is a temporary reset rather than a trend reversal, emphasizing that gold is now a conviction trade [4]. - The next significant market movement will depend on whether buyers engage near the identified support levels [4].