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πŸ’‘$XAUUSD (GOLD) πŸ’›A return to the safe haven? πŸ’°+7%πŸŒοΈβ€β™‚οΈ

Long
OANDA:XAUUSD   Gold Spot / U.S. Dollar
πŸ“–There has been an uptick in the 10-year treasury note yield, breaking out of resistance formed in June. A rise in bond yields is often a sign of potential weakness for precious metals like gold . However, the rapid printing of dollars of the US fed may sustain bullish arguments for Gold , as investors become more concerned with the weakening Dollar. There is also concern that some investors may be hedging with cryptocurrencies, like Bitcoin , rather than in precious metals. However, investors who are unwilling to accept the extreme volatility in Bitcoin are likely to gravitate to precious metals.

πŸ“ˆ Gold is down 13% from it's all time highs of $2075, after a stellar run of 42% as investors fled to the safe haven asset in light of the CV19 pandemic. A contributing factor to Golds subsequent decline may be the surprise overextended rally of stocks. Gold has completed a 0.618 Fib retracement from its 1 December $1776 lows and 6 January $1919 highs, with price now at $1831. Gold is currently still in a bearish price channel , but is being supported by a longer term bullish trendline. Should Gold break out of this level, and remain supported by the 200 day SMA and bullish trend line , Gold could rally to the $2000 psychological level. There is the previous double top pattern to watch out for though. Traders should watch for todays candle close, currently, it is looking like a hammer , a signature reversal canldlestick.

πŸ”ŽThis is not financial advice. Always do your own research and due diligence.
Order cancelled: Gold failed to make a nice green candle close above the declining trendline therefore invalidating this trade. Always wait for confirmation before entering a trade.