goldenBear88
Short

Short and Long term on Gold

TVC:GOLD   CFDs on Gold (US$ / OZ)
Long Term: I am beginning to see a similar pattern emerge as Gold prices stabilized over the past week and rallied today as the Fed introduced new liquidity injection facilities with this morning's announcement. Gold's recent slip is similar to what happened in #2008. All metals rebounded when the Federal Reserve announced quantitative easing in Nov #2008. By my calculations, now is the time to start planing to buy Gold Long-term, the safe-haven asset, amongst market panic over the impact of the growing coronavirus pandemic (more like “paniCdemic”). The commodity, which is considered "the currency of last resort," has slumped lately as investors sell the safe asset for DX . But Monday's unexpected action from the Federal Reserve represents a turning point for the asset, as it reverses these funding stresses and offsets the negative impact to wealth. Gold's recent slip is similar to what happened in #2008, when Gold also failed to act as a safe-haven asset and fell about 20% due to DX strength and a run into cash. The turning point for Gold in #2008 came when the Federal Reserve announced quantitative easing, at which point Gold began to soar, which was similar to the current scenario. On Monday, the Federal Reserve announced unprecedented actions to boost the economy amid the coronavirus pandemic, including unlimited Bond-buying and multiple facilities to aid companies and workers. I expect Gold to reach #1,800.70 by end of the Year (Long-term). Short Term: Gold continues to consolidate on the Hourly 1 basis as the #1,635.70 Resistance holds firmly. Technical pullback on yesterday's high as the DX keeps going higher while the Stock markets pulled upwards again. The new Channel Up is broken on the Hourly 4 chart and just made its Higher High (probable turning point and Bear signal) and is now aiming at a Higher Low around #1,595.70. Short term traders can take advantage of that. Remember that the moment DX rises, Gold will be devalued heavily. The Daily #MA200 is at #1,510.70, keep that for the record. I remain Bearish on Gold (Short-term) with my Target intact.

Comments

i think your correct but down the road, Gold will soar in a way it hasn't for a long time.
+1 Reply
goldenBear88 JonathanMcBrine
@JonathanMcBrine, Agreed!
Reply
I've seen some charts that say down as far as 891, then retrancement 61%
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