GoldViewFX - END OF WEEK UPDATE

Hey Everyone,

As you can see from the monthly chart we have been tracking for over 3 months, that we have comfortably rode the entire bull run into the test area we highlighted, followed with a rejection to the 1965 range we highlighted on the chart. A retracement was well overdue and now NFP gave the momentum needed to complete this.

This was an amazing catch over the last 3 months and the test zone we identified allowed us to take our exits in time. We are now out of all positions waiting for the tank to land.

For those who have been with us from the beginning, we have remained consistently bullish even during those times when sentiment for gold turned overwhelmingly bearish. This bull run has been aggressive in parts with a bit of choppiness thrown in here and there and that's not the best sign of a healthy trend but it still looks likely that gold will try and reach the $2000 level.

At this point in the trend, we have a very complex situation and there will be many fake gurus and so-called analysts that will lead novice traders to blow their accounts trying to navigate this. As an example of how asymmetrical the news/data is, yesterday's rally was in part driven by the US hitting their Congress-set ceiling at over $31 trillion. The Secretary of the Treasury, Yellen then announced the need for emergency measures including not paying all of the nation's bills. As a result, investors flocked to safe-haven assets including gold.

During the course of this week, FOMC members have been talking almost every day prior to the FOMC blackout ahead of the next FOMC meeting beginning on the 31st of January. St. Louis Fed President, James Bullard stated the need for raising rates quicker rather than reducing the pace of rate hikes saying, “why stall?” Yet, the market may still take gold into a new range higher after next week's Core PCE data release on Friday. The Core PCE is the Fed's preferred gauge of inflation and a cooler number will be a boost for gold.

We are pretty high up already and gold needs a healthy correction and when it comes, it will be brutal. As we have mentioned in a previous post, gold can shift ranges 2 or 3 times a year by 500 plus pips to 1000 plus pips. Remember that a correction, no matter how deep, is not the same as a breakdown and that doesn't look likely at all. For the so-called gurus and analysts who have predicting gold will go back down to the $1400s for the last two years plus, they'll just have to wait a little longer.

If we do not see a healthy pullback, gold may spend longer in consolidation before a turn much higher and this is where traders will look to go long on every dip no matter how shallow. Trading in these tight corners can be bloody. Stick with our plan to take 20 to 30 pips from every signal/manual trade and you'll avoid the swings and the inevitable crash down and ride it all the way to the moon.

We will now come back on Sunday with our updated multi timeframe analysis and plans for the coming week. Please don't forget to like, comment and follow to support us, we really appreciate it!

Have a great weekend all.

GoldViewFX
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