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goldenBear88
Aug 3, 2020 9:10 AM

Bull time for #5Y - Bear time for Gold / correlation Long

United States 5 Year Government Bonds YieldTVC

Description

Taking all aspects into consideration, personally - Gold is ready for more than #200$ historic decline on Medium-term. New monetary stimulus is prepared by U.S. officials, “economy recovery” process is expected as U.S. Treasury yields and Bond notes (#5Y), dipped without finding the Support regarding market sentiment and Technically - Bearish Price-action should be rejected, subsequently weighing on traditional reaction of the market/Investors using Gold as a safe-haven. Down (almost #0.205), in the shape of a near-full-bodied daily Bearish candle, Monthly chart Price-action (Bond notes #5Y) is determined to challenge October #17 #1,998. Year opening level on a strong decline which added strong Buying pressure on Gold and is a sole Fundamental reason of Gold’s current strong upswing. Another point worth taking on board here is the RSI indicator seen on the Yearly low’s, indicating strong turn of the events which is a messenger that Gold is facing the ultimate Top and the time has come for an strong correction. It is more than obvious that all current recessions are gradually well planned, such as one on #2008, #2012 and current one #2020 - and the result is uncontrollable rise on Gold representing Safe-haven. Once the Bond notes (#5Y) find the Support, I will carefully monitor and start Selling Gold on local Highs. That is why DX is also hammered (suited for currency printing - Fed left the rate unchanged means free money for Wall street and Investment Banks - which they will share further the printed currency (DX $). Also, Stock markets are currently moving on Swings (which is not usual for that kind of market) as an main example of market turbulence. Bottom line: My estimation shows that Gold can Trade within #1,680.80 - #1,780.80 within #2 Months.
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