Dan Bongino Considers Leaving FBI Following Clash w/ AG Bondi

(Luis CornelioHeadline USA) FBI Deputy Director Dan Bongino is reportedly considering stepping down after a heated clash with Attorney General Pam Bondi over the DOJ’s handling of the Epstein files and its rumored client list.

Tensions flared after Bongino, Bondi and FBI Director Kash Patel met with White House Chief of Staff Susie Wiles to discuss a leak to NewsNation about an internal dispute.  

The story, which Bondi claimed Bongino planted, alleged that the FBI disagreed with the DOJ’s claim that no further information from the files would be released. 

The clash was first reported by journalist Laura Loomer, who called Bondi “Blondi.” 

“I’m told Kash and Bongino are furious with Blondi and the blowback she has caused them with her lack of transparency,” Loomer wrote on X Friday morning. 

“Kash Patel and Dan Bongino should call for Blondi’s public resignation today to save themselves and to also push for full transparency into the Epstein files,” she added. 

Loomer also said a source told her that Bongino might resign unless Trump pressures Bondi to step down. 

Patel would also resign if Bongino leaves, noted the Daily Wire. The outlet also reported that Patel wanted Bondi to release more information about Jeffrey Epstein, the late convicted sex offender who ran a sex trafficking scheme. 

It was widely speculated that the federal government had a list identifying Epstein’s clients. Bondi has come under fire after walking back her earlier claim that the Epstein client list was in her possession.  

She suggested earlier this year that the list was at her desk. But on Tuesday, she issued a clarification:

“In February, I did an interview on Fox, and it’s been getting a lot of attention because … I was asked a question about the ‘client list’ and my response was, ‘It’s sitting on my desk to be reviewed, meaning the file, along with the JFK, MLK files as well. That’s what I meant by that.”

 

From Maine to Texas, Federal Agents Continue to Arrest MS-13 Gang Members

(Bethany Blankley, The Center Square) Across the country, federal agents are arresting members of the Mara Salvatrucha (MS-13) U.S.-Salvadoran transnational gang designated as a foreign terrorist organization by the Trump administration.

In January, President Donald Trump issued an executive order directing transnational gangs and cartels to be designated as foreign terrorist organizations. In February, eight were designated as FTOs, including MS-13.

MS-13 is an international criminal gang that originated in Los Angeles in the 1980s to protect Salvadoran illegal foreign nationals, but expanded the scope of its criminal enterprise. MS13 gang members engage in “campaigns of violence and terror in the United States and internationally,” they “are extraordinarily violent, vicious, and similarly threaten the stability of the international order in the Western Hemisphere,” presenting “an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States,” Trump’s order states.

This was after more than 300,000 Salvadorans were reported illegally entering the country under the Biden administration, The Center Square reported.

Federal agents are actively searching for FTO members, including MS-13, to arrest and deport. In the first few months of the Trump administration, more than 2,700 terrorist organization members, including MS-13, were arrested, The Center Square reported.

In Maine, Border Patrol agents arrested two MS-13 members so far this year. They apprehended one Salvadoran in the country illegally during a vehicle stop only to learn he was wanted by Interpol for aggravated murder in El Salvador. In another incident, Border Patrol’s Anti-Smuggling Unit searched for and found an MS-13 member in Portland. Both men were detained to undergo removal proceedings.

“The U.S. Border Patrol is committed to putting dangerous terrorists and violent gang members behind bars,” Border Patrol Houlton Sector Chief Juan Bernal said. “They present a real threat to our nation and to the American people, and as such, they remain a top enforcement priority for the Border Patrol. Members of the MS-13 terrorist organization should know that our agents will find you, we will work to prosecute you, and if you are not legally present in the United States, we will work to remove you from our country.”

Border Patrol agents in Maine have arrested Venezuelan Tren De Aragua terrorist organization and MS-13 members, Border Patrol says.

In Detroit, Border Patrol agents responded to a request for assistance from law enforcement partners in Sterling Heights, who detained two men involved in an altercation at a local motel. Record checks revealed the men were in the country illegally and one admitted to being a member of MS-13 who served 20 years in a Salvadoran prison for murdering a rival gang member.

“This is a major win for the U.S. Border Patrol and the safety of our communities,” Detroit Sector Acting Chief Patrol Agent Javier Geronimo, Jr., said. “This arrest is a clear example of how agents and our law enforcement partners are protecting our towns by removing violent criminals from our country.”

Both men are being processed for removal.

In Dallas, U.S. Immigration and Customs Enforcement officers apprehended Maria Julia Varela, a 36-year-old Salvadoran national, with connections to MS-13 and Barrio 18. She is also wanted in El Salvador for her alleged role in organizing an assassination attempt. She remains in ICE custody pending removal.

“This criminal alien fled El Salvador hoping to evade law enforcement and accountability for an attempt of conspiring to take some one’s life,” Homeland Security Investigations-Dallas Special Agent in Charge Travis Pickard said. “HSI Dallas remains steadfast in ensuring that communities in North Texas are not a refuge for international fugitives. We are dedicated to pursuing those accused of crimes that endanger public safety.”

In Boston, ICE officers working with the FBI apprehended 24-year-old Salvadoran national and MS-13 member, William Alberto Villalobos-Melendez, in Brockton who’d been illegally living in the U.S. for nearly nine years.

He was first apprehended by Border Patrol agents in 2016 after he illegally entered the U.S. near Hidalgo, Texas, as a gotaway, those who illegally enter between ports of entry to evade capture. Border Patrol agents issued him a notice to appear before a federal immigration judge. In 2019, he was ordered to be removed but wasn’t. He was arrested by Massachusetts state police in Middleboro in March on motor vehicle crimes and by ICE in May. He remains in ICE custody pending his removal.

“He is a validated member of a violent transnational street gang and poses a threat to our Massachusetts residents,” ICE ERO Boston acting Field Office Director Patricia Hyde said. “ICE Boston will not tolerate any threat that a member of a nefarious gang poses to our neighbors. We will continue to prioritize public safety by arresting criminal alien threats to our New England communities.”

$35,000 in Rewards Offered for Info Leading to Arrest of Man Involved in ICE Attack

(Bethany Blankley, The Center Square) Rewards totaling $35,000 have been offered for information leading to the apprehension of a wanted man allegedly involved in a planned ambush of federal and local law enforcement officers at a U.S. Immigration and Customs Enforcement detention facility in North Texas.

Texas Department of Public Safety issued a Blue Alert as a manhunt continues for the suspect, Benjamin Song, 32, “wanted in connection to violence against a law enforcement officer,” DPS said.

Texas DPS also added Song to its 10 Most Wanted Fugitive List, stating, “Subject should be considered ARMED and DANGEROUS!”

DPS released photos of him describing him as approximately 5’6” tall, weighing 150 pounds, with brown eyes and black hair.

Song has ties to Dallas County, including Dallas and Addison, DPS said. On July 8, warrants were issued out of Johnson County for his arrest for “Aiding Terrorism, Aggravated Assault with a Deadly Weapon on a Public Servant, and Engaging in Organized Crime.” On July 9, a federal arrest warrant was issued in U.S. District Court, Northern District of Texas, Fort Worth, after Song was charged with “Attempted Murder of a Federal Officer and Discharging a Firearm During, in Relation to, and in Furtherance of a Crime of Violence.”

The FBI, which is leading the ongoing investigation, has asked members of the public to provide any information about the incident by calling 1-800-CALL-FBI. It’s also issuing a $25,000 reward for information that leads to his arrest, bringing the total reward to $35,000.

Anyone who sees Song is instructed not to approach him and to call 911, the FBI, DPS or Texas Crime Stoppers.

To be eligible to receive cash rewards, tipsters must call Texas Crime Stoppers at 1-800-252-TIPS (8477), submit a web tip through Texas DPS’ 10 Most Wanted website or Texas DPS online form.

Tips are anonymous and tipsters are given a number instead of using their name.

On July 4, the Alvarado Police Department announced that one of its police officers had been shot in the neck after responding to a call without stating the incident occurred outside of an ICE detention facility. What occurred was “a planned ambush with the intent to kill ICE corrections officers,” involving 10 to 12 people dressed in black, wearing tactical gear and body armor, who shot 20-30 rounds at unarmed corrections officers and the police officer, Acting U.S. Attorney for the Northern District of Texas Susan Larson said.

Ten individuals were each charged with three counts of attempted murder of a federal officer and three counts of discharging a firearm related to a crime of violence. Each defendant faces a mandatory minimum 10 years in prison and up to life in prison. One co-conspirator was charged with obstruction of justice and conspiracy for attempting to conceal and destroy evidence and faces up to 10 years in prison, The Center Square reported.

It was the first of two officer involved shootings outside of a federal immigration facility in Texas this week, The Center Square first reported. The second occurred on Monday after a Michigan man opened fire on a Border Patrol facility in McAllen, Texas, shooting a McAllen Police officer in the knee who responded to the call. The shooter was killed by Border Patrol agents and a multiagency investigation is ongoing.

Josh Johnson, acting field office director for ICE Enforcement and Removal Operations-Dallas said, “This type of vigilante lawlessness is emblematic of the dangers federal, state and local law enforcement officials face every day. Within ICE alone, our officers and agents are facing a 700% increase in assaults.”

That’s a 200 percentage point increase from three weeks ago when attacks were up by 500%, The Center Square reported.

Protester Appears to Fire at ICE Agents During Camarillo Raid

(Dave Mason, The Center Square) Federal agents are looking for the man who appeared to pull a gun on U.S. Immigration and Customs Enforcement agents during a raid at a marijuana farm north of Los Angeles, where agents and several hundred protesters clashed.

Dozens of farmworkers were detained.

“FBI has issued a $50,000 award for information leading to the conviction of an Unknown Subject who appeared to fire a pistol at Federal Law Enforcement Officers near Camarillo,” U.S. Attorney Bill Essayli posted on X, with a clip of an ABC7 video of a protester with a gun. Essayli asked anyone with information to call 1-800-CALL-FBI (1-800-225-5324).

The ICE raid was conducted Thursday at Glass House Farms, which is licensed to grow marijuana in Ventura County.

“Federal agents are executing a search warrant at this marijuana farm,” Essayli wrote in another post on X. “Agents have already arrested multiple individuals for impeding this operation and will continue to make arrests. Don’t interfere. You will be arrested and charged with a federal offense.”

Border patrol agents stood in a line to block protesters, according to media reports. Protesters and children were seen in TV stations’ videos running as ICE agents threw canisters of tear gas.

“Kids running from tear gas, crying on the phone because their mother was just taken from the fields,” California Gov. Gavin Newsom posted on X. “Trump calls me ‘Newscum’ — but he’s the real scum.”

But U.S. Customs and Border Protection Commissioner Rodney Scott had a different take.

“Here’s some breaking news: 10 juveniles were found at this marijuana facility – all illegal aliens, 8 of them unaccompanied,” Scott posted on X. “It’s  now under investigation for child labor violations.”

The U.S. Department of Homeland Security also responded to Newsom’s post with this note on X: “Why are there children working at a marijuana facility, Gavin?”

The Center Square reached out Friday to Glass House Farms, but did not get an immediate response.

Another ICE raid took place Thursday farther north at the Glass House Farms site in Carpinteria in Santa Barbara County, according to media reports.

Israel Urges the US To Start Bombing Yemen Again

(Dave DeCamp, Antiwar.com) According to Israeli media, Israel is urging the US to start bombing Yemen again following two Houthi attacks on commercial ships in the Red Sea this week, operations the Houthis, officially known as Ansar Allah, have said will stop if there’s a ceasefire in Gaza.

Citing Israel’s Kan public broadcaster, The Times of Israel reported that Israel told the US that the Houthi attacks “can no longer remain solely an Israeli problem,” and called for “more intense combined attacks against Houthi regime targets — not just [Israeli] air force fighter jet strikes, but also a renewal of American attacks and the formation of a coalition including additional countries.”

An Israeli official said that a “broad coalition is needed to convey to the Houthi regime that it is in danger.” Israel has launched several rounds of airstrikes since the US stopped bombing Yemen, but it has failed to stop Yemeni attacks.

The report came after the US State Department hinted that US airstrikes on Yemen could resume after the Houthi attacks on two Greek-owned ships, which killed at least four crewmembers from one of the ships. “The United States has been clear: we will continue to take necessary action to protect freedom of navigation and commercial shipping from Houthi terrorist attacks, which must be condemned by all members of the international community,” said State Department spokeswoman Tammy Bruce.

President Trump launched airstrikes against Yemen from March 15 to May 6, which involved over 1,000 missile strikes and killed over 250 civilians. The brutal bombing campaign was launched in response to the Houthis announcing they were reimposing a blockade on Israeli shipping in response to Israel violating the Gaza ceasefire by imposing a total blockade on the Palestinian territory.

Throughout the US bombing campaign, the Houthis were able to fire missiles and drones at US warships and launch missiles at Israeli territory. Multiple US MQ-9 Reaper drones were shot down, and the US lost two F/A-18 fighter jets that fell off aircraft carriers during Houthi attacks. While Trump framed his ceasefire with the Houthis as a victory, he essentially gave up on trying to stop the Houthi attacks on Israel.

The Houthi attacks on cargo ships this week marked the first time Ansar Allah targeted commercial shipping this year. At the time of the ceasefire with the US, Ansar Allah officials said they agreed not to target US ships if the US stopped bombing Yemen, meaning attacks on Greek-owned vessels wouldn’t violate the deal.

President Biden also failed to deter the Houthis in a bombing campaign that he launched in defense of Israeli shipping and carried out from January 2024 to January 2025. The only thing that stopped the Yemeni attacks was the short-lived Gaza ceasefire.

The Houthis are notoriously resilient, having survived a brutal US-backed Saudi-UAE war from 2015 to 2022, which killed at least 377,000 people.

This article originally appeared at Antiwar.com.

Report: DOJ Released ‘Modified’ Version of Jeffrey Epstein Prison Video

(Ken Silva, Headline USA) Tech publication Wired reported Friday that the video of Jeffrey Epstein’s prison wing released by the Justice Department earlier this week may have been “modified.”

“Metadata embedded in the video and analyzed by WIRED and independent video forensics experts shows that rather than being a direct export from the prison’s surveillance system, the footage was modified, likely using the professional editing tool Adobe Premiere Pro. The file appears to have been assembled from at least two source clips, saved multiple times, exported, and then uploaded to the DOJ’s website, where it was presented as ‘raw’ footage,” Wired reported.

“Experts caution that it’s unclear what exactly was changed, and that the metadata does not prove deceptive manipulation. The video may have simply been processed for public release using available software, with no modifications beyond stitching together two clips. But the absence of a clear explanation for the processing of the file using professional editing software complicates the Justice Department’s narrative,” the publication added.

Wired’s story comes amidst a reported fallout between Attorney General Pam Bondi and FBI Deputy Director Dan Bongino over how the Epstein disclosures have been handled. Axios reported Friday that Bongino is “furious” with Bondi and skipped work on Friday.

The controversy stems from a DOJ memo obtained by Axios on Sunday, which said that the FBI reviewed more than 300 gigabytes of Epstein evidence—and that there isn’t any evidence of a vast human trafficking or sexual blackmail operation.

The memo, which included links to the prison footage, also said that Epstein killed himself.

The purpose of releasing the prison footage was ostensibly to show the public that no one had access to Epstein’s cell the night before he was found dead in his cell on Aug. 10, 2019. However, as Headline USA has explained, the footage does not provide evidence that Epstein killed himself. The camera only showed a tiny sliver of a staircase leading to Epstein’s cell. The camera in Epstein’s cell block, which had at least three other inmates, wasn’t recording. Nor was the camera covering one of the elevator bays that led to Epstein’s floor.

And now, it turns out that not even the limited footage released by the Justice Department can be trusted. Along with Wired’s post about the modified footage, online sleuths noted that at least a minute of the roughly 11-hour video is missing. The video cuts out at 11:58:59, and restarts right at midnight on August 10—an occurrence that Bondi blamed on the prison’s antiquated video system.

Epstein’s death was ruled a suicide by hanging after he was found dead in his jail cell on August 10, 2019. But his lawyers contested that claim. Skeptics point to malfunctioning surveillance cameras, sleeping guards, and broken bones in Epstein’s neck as indications that his death was something other than suicide.

Because of Epstein’s extensive fraternization with high-profile politicians and celebrities such as Bill Clinton, former Israeli PM Ehud Barak, Prince Andrew and Bill Gates and many more, some claim that Epstein’s death was actually a hit job to silence him. Proponents of that theory include Epstein’s former partner, Maxwell, who’s serving a 20-year prison sentence for sex trafficking.

“I believe that he was murdered. I was shocked, and I wondered, ‘How did this happen?’ Because I was sure he was going to appeal, and I was sure he was covered by the non-prosecution agreement,” Maxwell told British reporter Jeremy Kyle of TalkTV in 2023.

The non-prosecution agreement referenced by Maxwell was a sweetheart deal Epstein signed with the Department of Justice in 2008, in which he pleaded guilty to a state charge of procuring for prostitution a girl below the age of 18. Epstein was housed in a private wing of the Palm Beach County Stockade, and was reportedly allowed to leave the jail on “work release” for up to 12 hours a day.

After the Miami Herald published an expose on Epstein and his non-prosecution agreement in late 2018, Epstein was arrested again on July 6, 2019, on federal charges for the sex trafficking of minors in Florida and New York.

Ken Silva is the editor of Headline USA. Follow him at x.com/jd_cashless.

Appeals Court Throws out Plea Deal for alleged Mastermind of Sept. 11 Attacks

(Headline USAA divided federal appeals court on Friday threw out an agreement that would have allowed accused Sept. 11 mastermind Khalid Sheikh Mohammed to plead guilty in a deal sparing him the risk of execution for al-Qaida’s 2001 attacks.

The decision by a panel of the federal appeals court in Washington, D.C., undoes an attempt to wrap up more than two decades of military prosecution beset by legal and logistical troubles. It signals there will be no quick end to the long struggle by the U.S. military and successive administrations to bring to justice the man charged with planning one of the deadliest attacks ever on the United States.

The deal, negotiated over two years and approved by military prosecutors and the Pentagon’s senior official for Guantanamo Bay, Cuba, a year ago, stipulated life sentences without parole for Mohammed and two co-defendants.

Mohammed is accused of developing and directing the plot to crash hijacked airliners into the World Trade Center and the Pentagon. Another of the hijacked planes flew into a field in Pennsylvania.

The men also would have been obligated to answer any lingering questions that families of the victims have about the attacks.

But then-Defense Secretary Lloyd Austin repudiated the deal, saying a decision on the death penalty in an attack as grave as Sept. 11 should only be made by the defense secretary.

Attorneys for the defendants had argued that the agreement was already legally in effect and that Austin, who served under President Joe Biden, acted too late to try to throw it out. A military judge at Guantanamo and a military appeals panel agreed with the defense lawyers.

But, by a 2-1 vote, the U.S. Court of Appeals for the District of Columbia Circuit found Austin acted within his authority and faulted the military judge’s ruling.

The panel had previously put the agreement on hold while it considered the appeal, first filed by the Biden administration and then continued under President Donald Trump.

“Having properly assumed the convening authority, the Secretary determined that the ‘families and the American public deserve the opportunity to see military commission trials carried out.’ The Secretary acted within the bounds of his legal authority, and we decline to second-guess his judgment,” Judges Patricia Millett and Neomi Rao wrote.

Millett was an appointee of President Barack Obama while Rao was appointed by Trump.

In a dissent, Judge Robert Wilkins, an Obama appointee, wrote, “The government has not come within a country mile of proving clearly and indisputably that the Military Judge erred.”

Adapted from reporting by the Associated Press

Man Accused of Attempting to Assassinate Trump Wants to Represent Himself

(Headline USAA man charged with attempting to assassinate Donald Trump last year at his Florida golf course told a federal judge Thursday he wants to fire his court-appointed lawyers and represent himself, saying he will be ready to defend himself before a trial jury this fall.

Ryan Routh made his request during a hearing in Fort Pierce before U.S. District Court Judge Aileen Cannon.

When the judge asked Routh, 59, whether he wanted her to appoint new attorneys to defend him, Routh replied: “No. I will represent myself.”

Routh is scheduled to stand trial in September, a year after prosecutors say a Secret Service agent thwarted his attempt to shoot Trump as he played golf. Routh has pleaded not guilty to charges of attempting to assassinate a major presidential candidate, assaulting a federal officer and several firearm violations.

Cannon closed the courtroom to reporters and the public for about an hour Thursday to discuss matters potentially involving attorney-client privilege. The public portion of the hearing resumed with Cannon questioning Routh for about 30 minutes on whether he understands the gravity of defending himself in a case where he could face life imprisonment if convicted.

“Do you understand that self-representation is almost always a bad idea?” the judge asked Routh.

“Yes, your honor,” replied Routh, who described the extent of his education as two years of college after earning his GED certificate.

Cannon also asked Routh if he understood the court’s rules of evidence and federal criminal procedure. He told her: “I have a book.”

Cannon did not rule during the hearing. She said she would issue a written order later.

The U.S. Supreme Court has held that criminal defendants have a right to represent themselves in court proceedings, as long as they can show a judge they are competent to waive their right to be defended by an attorney.

The judge told Routh she doesn’t intend to delay the Sept. 8 start date of his trial, even if she lets him represent himself. Routh told her that he understood and would be ready.

Prosecutors have said Routh methodically plotted to kill Trump for weeks before aiming a rifle through the shrubbery as Trump played golf on Sept. 15 at his West Palm Beach country club. A Secret Service agent spotted Routh before Trump came into view. Routh allegedly aimed his rifle at the agent, who opened fire, causing Routh to drop his weapon and flee without firing a shot.

Law enforcement obtained help from a witness who prosecutors said informed officers that he saw a person fleeing. The witness was then flown in a police helicopter to a nearby interstate where Routh was arrested and the witnesses confirmed it was the person he had seen, prosecutors have said.

In addition to the federal charges, Routh also has pleaded not guilty to state charges of terrorism and attempted murder.

Adapted from reporting by the Associated Press

‘Militia Leader’ Who Posted Video of Father’s Severed Head Online is Found Guilty of Murder

(Headline USAA Pennsylvania man who posted a video of his father’s severed head on YouTube was convicted of murder Friday and sentenced to life without parole.

Bucks County Judge Stephen A. Corr found Justin D. Mohn, 33, guilty in the January 2024 shooting death of his father at their home in the Philadelphia suburb of Levittown.

After the sentencing, Bucks County District Attorney Jennifer Schorn told reporters Mohn had exhibited a “complete and utter lack of remorse,” calling it an “unimaginable, unfathomable crime.”

“We are satisfied that this was the right outcome to guarantee that the community at large is safe from Justin Mohn,” Schorn said.

A message seeking comment was left for Mohn’s defense attorney, Steven M. Jones.

Prosecutors said Mohn shot his father, Michael F. Mohn, 68, with a newly purchased pistol, then decapitated him with a kitchen knife and machete. The 14-minute YouTube video he posted was live for several hours before it was removed. Mohn testified during the trial that he shot his father while trying to arrest him on what he said were false statements and treason but his father resisted, so he fired at him. He said he severed his head to send a message to federal workers to meet his demands, which included their resignation among other things.

Mohn was arrested later that day after scaling a fence at Fort Indiantown Gap, the state’s National Guard headquarters. Prosecutors said he called for others to join him in attempting to overthrow the U.S. government.

Mohn had a USB device containing photos of federal buildings and apparent instructions for making explosives when he was arrested, authorities said.

He also expressed violent anti-government rhetoric in writings he published online, going back several years. During the trial, the judge heard from Justin Mohn’s mother, who said police came to the house he shared with his parents and warned him about his online postings before the killing.

Denice Mohn testified that she and her husband had been offering financial support and guidance as Justin Mohn looked for a job.

Prosecutors described the homicide as “something straight out of a horror film.” They said Justin Mohn killed his father — who had been an engineer with the geoenvironmental section of the U.S. Army Corps of Engineers’ Philadelphia District — to intimidate federal workers, calling it a “cold, calculated, organized plan.”

The YouTube video included rants about the government, immigration and the border, fiscal policy, urban crime and the war in Ukraine.

In court, Michael Mohn was remembered as a good neighbor and present, supportive father. In the video posted on YouTube, Justin Mohn described his father as a 20-year federal employee and called him a traitor.

During a competency hearing last year, a defense expert said Mohn wrote a letter to Russia’s ambassador to the United States seeking to strike a deal to give Mohn refuge and apologizing to President Vladimir Putin for claiming to be the czar of Russia. The judge ruled Mohn was competent to stand trial.

Evidence presented at the trial included graphic photos and the video posted to YouTube. The judge warned members of the public at the trial about the images and said they could leave before the photos were shown. The proceedings are known as a bench trial, with only a judge, not a jury.

Adapted from reporting by the Associated Press

Gold Grinding Sideways, but Gathering Strength

(Clive Maund, Money Metals News Service) Gold has made impressive gains so far this year, but when it spiked up to touch $3,500 in the middle of April, it became heavily overbought. That’s when gold went into a rectangular consolidation pattern that has given time for the overbought condition to fully unwind.

Because there is still a considerable gap with the 200-day, it means that there is room for the price to break down from the Rectangle and correct back towards or to this average.

In attempting to weigh the probability of this happening versus the price instead of breaking out upside from the Rectangle, we need to inspect the volume pattern and volume indicators, which normally provide valuable clues in a situation like this.

So, on the 6-month chart for SPDR Gold Shares, we see that, while the volume pattern is a little hard to decipher, the Accumulation line has continued to trend higher from the April peak as the price has tracked sideways and has even made new highs in recent days.

This is bullish and implies that, rather than breaking lower into a correction, GLD and thus gold itself will instead break higher into a new upleg.

If it does break lower, a likely scenario is that a short, sharp drop is followed by a rapid reversal to the upside.

Zooming out now to look at gold on a longer-term 6-year log scale chart, we see that it broke out early last year from a big trading range to commence a powerful uptrend.

This uptrend remains very much in force, with the price still well above the lower rail of the channel – even if it broke down from the Rectangle shown on the chart above and dropped to the $3100 level, it would not violate this channel.

On this chart, we can better see just how overbought gold got last April, hence the trading range that has since formed that we looked at above.

Zooming out again via a very long-term log-scale chart going all the way back to the start of the millennium, i.e., to the year 2000, affords us an overall Big Picture perspective.

This chart makes clear that the breakout early last year from the large trading range that started to form in the middle of 2020 actually marked the breakout from the Handle of a gigantic Cup & Handle continuation pattern that started to form as far back as 2012.

This is a truly enormous consolidation pattern that certainly has the capability to support a correspondingly big bull market, and as we are only about 16 months into this major new bull market, it clearly has much further to run.

In conclusion, we are looking for a breakout from the current rectangular trading range that has formed from April into another major upleg.

If gold should instead break down from this range and correct back towards or to its rising 200-day moving average and the lower rail of its uptrend channel, it should then reverse back to the upside into a vigorous uptrend. Volume indicators are suggesting that the former scenario – a breakout into another upleg from the trading range without any further corrective action first – is more likely to prevail.

Originally Published by Clive P. Maund.


Clive P. Maund is a longtime trader who has provided professional chart analysis for over a decade, covering a wide range of markets with a special focus on the resource sector. In addition to his decades of trading experience and financial research, Clive obtained a UK Society of Technical Analysts diploma.