on Thursday gold has broken above a major .
on Friday we saw a very strong buying reaction and test of 1515 level.
1515 level is very peculiar for us because it is the major level.
Indeed, during the US session, we saw a very strong selling reaction from this level.
For next week we have two equally possible scenarios:
1 - Market participants will start buying the retest of the
and we will see the second test of 1515 level
2 - The breakout of the will turn to a fake one
and we will see a continuation to major support of a current wide horizontal range.
though two options are equally possible,
my spidey senses encourage me to the second option!
let's see how it goes and have a great weekend!)
Until then, it will probably just hover around as traders wonder if they should keep gold or sell ahead of GDP.
Likely GDP will be worse or equal to expected which I believe is 1.4%, and that's not a great number!! Gold will hang on or go up slightly, while the DOW retreats a bit. Then, everything will starts to get undone again as usual with all the pumping going on, and by end of next Nov, same thing will repeat. In Nov we may see another small decrease in the GDP yet again, and again see gold up, then by Mid Dec retail #'s will either make or break gold.. if we get two consecutive retreating GDP #'s and a bad retail #, there will be a huge break of some sort mid Dec.
Watch for 3 consecutive drops, this is why I say.. mid December. And this is not to the downside of gold! If Oct sales go below Sep, Nov # shouldn't be a surprise.. We haven't had three consecutive worsening sales for 10 years. Anyway.. I would recommend you go by the numbers instead of senses.. because the trend is that numbers are weakening.. And gold at 1500 is the result and proof of that. There's no way it would be at 1500 if those numbers weren't weakening.
"The CFO Optimism Index, which historically has been an accurate predictor of hiring and GDP growth, fell this quarter. Fifty-five percent of CFOs have become more pessimistic compared to the 2nd quarter this year, far outnumbering the 12 percent who say they have become more optimistic." https://www.fuqua.duke.edu/duke-fuqua-insights/cfo-survey-q3-2019
this is exactly what donal trump wants and more things that you mentioned correctly
Technically , I love Gold to predict further movement of USD , and i personally believe , after this beautiful uptrend in short term , we have to wait for a downtrend which is strengthening the USD , Because we have Bearish spike from 25 oct. to 29 Oct. and after that we are having Bullish retracement
So , i'm agree with having more strong Dollar in Future .