Buy order activated / Gold maintains Buying momentum

Technical analysis: My mid-week Target been met earlier than I expected as the DX (# -0.27%) dipped once again and is about to fill the Bullish gap previously priced in. The Volatility is still High however and Gold (giving me only small accuracy patterns and mixed Technical signals) may look to set a new Support zone first (my estimate #1,778.80 - #1,782.80) before hitting #1,800.80 psychological benchmark or above. The Medium-term trend remains Bullish with Daily chart turned green on all of it’s MA periods, still on the early stages of the new Bull run as it is just above the Fibonacci level (hence the current pull back). My Medium-term Target remains #1,815.80 and #1,827.80 in continuation. I will treat every Bearish spike as an Buying opportunity. Notice how, as explained on previous posts, the DX broke its Daily chart’s Support zone which was much needed confirmation of an eminent upswing on Gold in order to break first Lower then Higher. The decline on Bond Yields also helped. I believe that Gold's Technically set to push Higher, potentially testing #1,827.80 as Interest rates are trending Higher, central banks extend purchases, and uncertainty surrounding geopolitics. As these Interest rates came down, Gold has rallied in #2019, rising to the Highest level in #6-Year period, as Investors contemplate slowing economic growth, prospects for easier monetary policy in the U.S. and China and festering Trade frictions. The upswing has been given added momentum as central banks, including authorities in Russia and China step up purchases. A revival in Stocks may lead to spillover demand from Investors for the older haven, Gold.


Decent number of Traders made inquiries regarding how I determine correlations - as for the correlations and when Gold follows more closely one asset compared to another, this is just up to the analyst (myself) to determine. I do monitor all the time those instruments (have #1 screen dedicated to them on my desk) and how they move against each other and this is how I determine which affects Gold most on a particular Trading day / session. There is no other way to do it or theoretical framework, it is simply fieldwork which requires lot’s of Trading experience. Notice that I’ve referred to this approach as a guideline, prior to your inquiry. It requires thinking (constant monitoring of the Gold charts) and work on Trader’s end to ensure these guidelines maximize the effectiveness of Investing style (experience plays huge role in this). All Investors are different, so there is no hard-and-fast Buying / Selling rule which all Investors should follow. Even with these differences, it is vital that all Investors have some sort of “exit strategy”, which I call Risk management (which I am using, especially if Volatility is on the market, which is the case at the moment). This will greatly improve the odds that the Investor will not end up holding worthless Position at the end of the session which will provide nothing more than losses. The point here is to think critically about every Position and what could go wrong (especially Fundamental shocks), also create an scenario in which Trader / Investor executes the Position to protect the remaining capital / capital preservation is equally important as a Profitable call, and trust the model (reasons) why he / she entered the market in the first place. Trader should know what his / hers Investor style is and then use mentioned strategy to stay disciplined, keeping the emotions out of the market which can harm the capital. Myself, my approach is more Medium-term and I rely mostly on Technical side. So, try to understand that the answer to your question is not very easy to give. There are numerous parameters to account to, and even then, there are news that may distort all this.


My position: I have engaged my Buying order with #1,785.80 as an key entry point. Optimal Target for the sequence remains #1,815.80 Short-term Resistance. I expect my Target to be filled within #2-session horizon.