abel11

GOLD PRICE: After climbing an all time high, What is next?

COMEX:GC1!   Gold Futures
Gold futures are inching higher late in the session on Tuesday as a weaker U.S. Dollar drove up foreign demand just enough to underpin the dollar-denominated asset. Prices could rise further into the close because March 10-year Treasury notes have reversed to the upside and are currently in a position to close higher for the session. For those who don’t know, Treasury have an inverse relationship with yields so this means yields are falling today.

Earlier in the session, gold prices eased in choppy trading that earlier saw it climb as much as 1% as a surge in U.S. Treasury yields outweighed support from bets on higher inflation as Washington rolls out more stimulus.
Some traders speculate that gold’s underperformance since August, 2020 is unlikely due to the rise of bitcoin .

The second week of the new year has been less favorable to gold as prices dropped well below $1,900 an ounce amid the higher U.S. dollar and U.S. yields. February Comex gold futures were last at trading at $1,849.50, down 0.07% on the day.
The yield on the U.S. 10-year Treasury note rose to its highest levels in nearly a year on Tuesday, last trading at 1.169% as investors became more risk-on in light of the Blue Senate outcome, which forced markets to price-in more stimulus.

I believe that the possibility of a short term U.S. dollar rebound due to risk aversion should be utilized to add to gold investments. Gold should be bought at $1,850 and half the positions below $1,750 over the next few months.

With record global debt and MMT in place, there is more certainty that it is about time that gold will reprice itself to account for dollar debasement. When faith in the modern monetary system is shaken, there is a tendency to shift towards hard assets, probably justifying why central banks across the globe have been net buyers of gold bullions since the Global Financial Crisis.

Comments

Detailed work, very appreciate brother
100coins
+1 Reply
abel11 DaweFXHunter
@DaweFXHunter, i appreciate your feed back. thank you
Reply
Appreciate your work!
+2 Reply
abel11 Sinigdha123
@Sinigdha123, i appreciate your feed back
Reply
Totally agree with your assessment. This is the third day after the sharp drop. Price is holding firm. The likelihood of further downfall is small. I also think the correction phase may have completed, short of a major market crash. Please also noted the seasonality of gold. It tends to peak in August and drift down to the end of the year, then starts to go up in January. Added position Monday.
+2 Reply
abel11 Samywchen
@Samywchen, thank you for the added insight. where are your targets?
Reply
@abel11, I trade GLD, looking to exit starting around $205.
Reply
abel11 Samywchen
@Samywchen, wish you good luck
Reply
Abel is back on a killing spree haha👍🏼
+1 Reply
abel11 Investroyllc
@Investroyllc, thank you mate
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out