Gold looks to be consolidating further to complete the cup and handle formation. Expect short term downside forming the wedge handle. if gold breaks out of handle, its time to go long. In the meantime be patient and keep an eye out for an opportunity to make a nice profit on the breakout. If falling wedge breaks below .5 Fib, this chart is no longer valid. A cut in interest rates in the near future would be enough to validate this analysis, or possible surprise from Brexit.
Comment:
Markets are pricing in a fed rate cut. That is why the market keeps going up with bad economic news. The institutional investors know that the fed needs to cut rates in order to stop the economy from going into a recession. Keep your ears to the ground. Listen for the mainstream media to start putting out the idea of a Fed rate cut. Just talk about a rate cut will move gold higher. I expect this news to start hitting the media in the next month or two.
Comment:
Larry Kudlow just came out on mainstream media talking about a 50 Basis point rate cut. I think it is funny how he was just saying how great the economy was last week. What changed? They are prepping everyone for a rate cut. It happening a lot sooner than I expected. The cup and handle formation will likely complete soon. I have a strong feeling the next move by the Fed will be a cut in interest rates. The economy is crumbling quickly from the last couple of rare hikes. This is the new normal. Expect gold prices to make new highs as the dollar will get absolutely hammered down.
Comment:
President Donald Trump tweeted today that we need QE4! What have I been talking about? Look for these hints to continue and increase in frequency. They are putting the Fed in a corner. The Fed will be forced to react in order to not be blamed for the comming recession.