Gold fell into a range last week after creating a new high at 1845.
Although resistance at the 200++ moving average did create a reversal candlestick formation, the price found support and quickly parred all losses in the week.
Gold is now at a critical juncture as the last line of defense (200++ MA) before a potential parabolic bull run.
Given the current fundamentals, the US is at risk of hyperinflation since the last inflation data was released and that's what drives gold prices.
So we now have both technical and fundamental showing us a bullish gold market, not forgetting to mention that the dollar will continue to depreciate further due to the unprecedented money supply caused by the Fed.
Price of Interest:
Resistance - 1856 (equilibrium), 1950 (7-month supply zone)
Support - 1820 (bottom of channel), 1750 (neckline)
Although resistance at the 200++ moving average did create a reversal candlestick formation, the price found support and quickly parred all losses in the week.
Gold is now at a critical juncture as the last line of defense (200++ MA) before a potential parabolic bull run.
Given the current fundamentals, the US is at risk of hyperinflation since the last inflation data was released and that's what drives gold prices.
So we now have both technical and fundamental showing us a bullish gold market, not forgetting to mention that the dollar will continue to depreciate further due to the unprecedented money supply caused by the Fed.
Price of Interest:
Resistance - 1856 (equilibrium), 1950 (7-month supply zone)
Support - 1820 (bottom of channel), 1750 (neckline)
Comment:
And here you go, another bull run for the gold just before FOMC.
The gold is just 11usd away from 1900 from today's high.
Besides, we now see a clear breakout of the top of the rising channel.
We expect the gold to perform another bull run beyond 1920.
But just before that, let's observe FOMC later.
The gold is just 11usd away from 1900 from today's high.
Besides, we now see a clear breakout of the top of the rising channel.
We expect the gold to perform another bull run beyond 1920.
But just before that, let's observe FOMC later.
We are pretty confident that we will get another bull run by today or tomorrow, pushing the gold all the way to 1900.
You see, the thing is that inflation risk is right now increasing at a very very fast pace and that's good for the gold.