Gold prices cannot rise forever. Learn the technical and fundamental signals that suggest it might be time to take profits.
The Psychology of Peaks
Bull markets often end in euphoria. When everyoneΓÇöfrom your taxi driver to your tailorΓÇöis talking about buying gold because "it only goes up," it is often a contrarian signal that the market has peaked.
Fundamental Signals
A major signal to watch is the US Federal Reserve. If inflation is defeated and the Fed begins aggressively raising interest rates, the US Dollar strengthens. A strong dollar is traditionally the kryptonite of gold.
Taking Partial Profits
You do not need to sell all your gold. A prudent strategy is "rebalancing." If gold was 10% of your net worth, but a massive price spike has made it 30% of your net worth, sell the excess 20% and invest those profits into undervalued assets like real estate or stocks.