CesaroPelucci

Gold bulls' revenge will be sweet (Update 2)

Long
OANDA:XAUUSD   Gold Spot / U.S. Dollar
Hi guys,

The Delta Corona variant is stealing headlines around the world and equities got smashed down yesterday pretty hard. Crypto seems to be getting a beating too along the way and it is not looking pretty in the market. Gold is keeping up pretty well (unlike Silver which is hammered down just as everything else). Time for a follow up on my last chart.

Last week we hit my first target of 1835 after the CPI numbers got released and dovish comments by Powell. The inflation is getting uncontrollable with the annualized montly figures hitting almost 11%. These are record breaking numbers we have not seen since the 1980's. With US10 yields also getting hammered down to below 1.2%, gold and the dollar seem to be the favorable instruments for traders and investors to put their money in. Current environment and dynamics are extremely bullish for gold .

Gold bears retested bullish commitments at the important psychological 1800 price support and it got bought up quickly with the daily candle closing as a dragonfly doji 1810+. These are good signs for bullish continuation towards my second target of 1845. However, I expect we will remain rangebound 1800-1835 for some time until there is a catalyst or a 'black swan event' before we can break through and see much higher prices for gold . It is not the question 'if' we breakout, but 'when' we breakout.

Risk events that are coming up:
- ECB interest rate decision on Thursday
- PMI day on Friday

I remain bullish on gold , and buying dips remains my strategy. I will avoid selling gold before we see 1900-1920 at least (Target Zone 1).

Love and hugs,

Cesaro