Veteran trader Peter Brandt has warned that gold’s recent surge above $3,000 could carry long-term consequences, as the commodity appears to have entered a “blow-off stage,” a sign the current rally may be nearing an unsustainable peak.While gold prices may continue climbing, attempting to predict the exact top can be risky and costly, according to Brandt in an X post on April 15.The four-decade trading expert further warned that such blow-off tops often extend “well beyond a bear’s ability to meet margin calls.”“Gold has now entered its blow-off stage. Such rapid advancement will come to a terminal top, but attempting to pick a high can be very expensive,” he said. Blow-off stages tend to last longer than expected, often squeezing out bearish positions through forced margin calls before reversing sharply. This phase typically marks the final leg of a bullish cycle, characterized by parabolic price action and euphoric sentiment.Brandt backed his outlook with chart insights featuring Comex Gold futures (GCM25), which exploded past the $3,000 level, closing at $3,284 on April 15.The analysis depicted a “J-Hook” continuation pattern followed by a vertical breakout, pointing to potential parabolic behavior that often defines the final phase of a major uptrend.While blow-offs can yield[...]
Gold has ‘entered its blow-off stage’, cautions veteran trader
