Following my initial gold long call in September we've seen an 15% gain in the precious metal.
Fundamentals
- Gold price hinging on DXY has had a bullish pivot after the FED signaled a possible easing.
- Rate cut probabilities currently lie around 70% for July onwards --> Certainly Bearish Dollar and Bullish Gold
- China and Russia are increasingly talking about a universally used token of exchange to replace the dollar. They have both been the largest net buyers of gold in the last few years, increasing their stockpiles. There is a possibility that the new medium will be gold-backed and this is undoubtedly bullish on the yellow metal.
Technicals
- Post September we witnessed the completion of both a first and third wave
- Wave 4, a corrective wave has just retraced down to 1260 levels and the final impulse wave has begun, spurred by FED dovish pivots.
- Expect a small retracement down to 1300 - 1320 levels before another move higher.
Fib levels indicate 1300 (0.618) retracement, 1310 is (0.5) and 1320 (0.382) level. These are all very important as potential bounces as we wait for another downturn in the DXY.
- The key level on the upside is 1360, a break through this level could send us all the way to 1400 and further.
- There are also a number buy triggers positioned above this level, according to recent reports, which would push the price up above 1400.
Fundamentals
- Gold price hinging on DXY has had a bullish pivot after the FED signaled a possible easing.
- Rate cut probabilities currently lie around 70% for July onwards --> Certainly Bearish Dollar and Bullish Gold
- China and Russia are increasingly talking about a universally used token of exchange to replace the dollar. They have both been the largest net buyers of gold in the last few years, increasing their stockpiles. There is a possibility that the new medium will be gold-backed and this is undoubtedly bullish on the yellow metal.
Technicals
- Post September we witnessed the completion of both a first and third wave
- Wave 4, a corrective wave has just retraced down to 1260 levels and the final impulse wave has begun, spurred by FED dovish pivots.
- Expect a small retracement down to 1300 - 1320 levels before another move higher.
Fib levels indicate 1300 (0.618) retracement, 1310 is (0.5) and 1320 (0.382) level. These are all very important as potential bounces as we wait for another downturn in the DXY.
- The key level on the upside is 1360, a break through this level could send us all the way to 1400 and further.
- There are also a number buy triggers positioned above this level, according to recent reports, which would push the price up above 1400.
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