Taking 1st of January 2015 as the starting point, I overlapped gold prices and US10Y bond yields to review the correlation between these. The scales are by percentages taking 2015/01/01 level as zero point. The correlation is apparent as we know about it. I noted two points in this chart: (1) The correlation cycle is diverging since the beginning of year 2017. Personally, I take the starting point of this divergence at mid-December 2016 when Trump announced that his economic policy would not favor strong USD, and this speech badly shocked the markets who were holding great expectations on USD. (2) As of today, gold prices recovered well back to price levels before US election, on the other side US10Y bonds yields are still much above their November.2016 levels, This might be due to the quantitative tightening actions of FED. Recently, US10Y bonds yields are defending the 2.100-2.200 band, but the general bias is on further decrease side with a big risk.
Madam you do wonderful analysis. Are you a six sigma expert.. What di u expect GOLD to having in Week of 3 Sep to 8 Seo. My analysis shows a Fibo retracements to 1300 $. Post that it would continue it's journey of fibo extension of 1380. I have plotted this level considering August second fortnight chart. Please guide further.
CitRoN_RouGe
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@dhirajsabharwal28, Retracement back to 1300 is probable, but 1380 would be a really big surprise this week. I expect the price to range and consolidate between 1300-1340. My idea is to sell at 1335-1340 and to buy at 1300-1305 (with SL margin of 5-10$).
dhirajsabharwal28
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@CitRoN_RouGe, No No Mam. I am not talking Bout 1380 in a week. Am mentioning 1380 as overall trend. I fully agree buying at 1300. Yes this is knowledge to me to book profits at 1340. Thanks.