Gold just ran into its first real test, and Peter Schiff wants you to know this is exactly the kind of moment where you're supposed to lean in. After a powerful surge that pushed gold into overbought territory, the metal is pulling back as momentum cools. Schiff's message is simple: buy the dip.
The question investors are wrestling with now is whether this is just a healthy pause in a strong uptrend or the beginning of something messier. The charts are showing a transition from momentum-driven breakout to support-level test, and the next few sessions could tell us a lot about who's still willing to show up.
GLD Loses Its Short-Term Momentum Edge
The SPDR Gold Shares (GLD), the most widely traded gold ETF, is currently hovering near $452. That puts it below its 20-day moving average of $457.56, a key short-term momentum gauge. Losing this level is a pretty clear signal that the aggressive buying that fueled the recent rally has taken a breather.
The momentum indicators back up that story. The Relative Strength Index (RSI) has dropped to 52, down from near-overbought levels above 70 earlier this month. That's firmly in neutral territory, suggesting buyers and sellers are now evenly matched rather than bulls running the show.
And then there's the MACD indicator, which has turned negative. Translation: upside momentum has weakened in the near term, at least for now.
The Bigger Picture Still Looks Intact
Here's the thing though: the longer-term structure hasn't broken. GLD is still holding well above its 50-day moving average at $425.79 and its 200-day moving average at $355.54. Those are the structural support levels that define the broader bull trend, and as long as they hold, the uptrend remains in play.
GLD is also trading above its lower Bollinger Band near $424.86, a level that often acts as technical support when bull markets are consolidating rather than collapsing.
Schiff's dip-buying call reflects confidence that this pullback is just a temporary reset, not a reversal. But the technical reality is that gold isn't being driven purely by momentum anymore. It's becoming a conviction trade. Whether buyers step in near these support levels will determine what happens next, and that's the kind of setup where the market tends to reveal who's really committed and who was just riding the wave.
