Gold: 6 year Rounding Bottom Pattern target to $1800
Hi all,
I've been bullish on Gold since Dec 2016. The name of the game in this commodity has been patience as we work 7-8 years lack luster price action waiting to retest all-time-highs near $2,000. Is Gold to $1800 in 2020 possible??? Geo-political tensions combined with global debt and growth concerns could be the perfect concoction for such an eventual move for Gold.
Gold continues its tear despite the equity market rally and Fed pivoting on interest rate hikes. Investors are not convinced that markets are set to rebound long-term, thus getting more Gold exposure despite Tom Lee @Fundstrat and many other analysts calling for all-time highs and double digit returns for equities rest of 2019. The dollar is showing signs of weakness which helps Gold.
The elephant in the room is China/US trade deal. March 1st is a significant date as this marks when the US trade tariffs against China will rise from 10% to 25% if no deal is made. If no deal is made (which is unlikely) you can imagine what kind of impact this will have on equity and commodity markets the very next day. Investors will flock to Gold, the US Dollar and some are questioning whether such an event would fuel the next Bitcoin rally. Van Eck has confirmed that Bitcoin did take away market share from Gold in 2016-2017 and that they are competitors, but have since given the reigns back to Gold due to the crypto-winter slump.
Things to watch for in 2019 that would impact Gold:
US Government Shutdowns
Brexit
China GDP - expected to slow
Geo-Political risks between US/Rus/China/Japan/N. Korea/Syria/Iran
US Dollar - showing signs of weakness
Bitcoin Rally - Mike Novogratz says 8k is possible in Q4 and says institutional dipping toes in then
Fed Interest Rate Hikes - most analysts leaning towards no more hikes for 2019
Regards,
Bobby
I've been bullish on Gold since Dec 2016. The name of the game in this commodity has been patience as we work 7-8 years lack luster price action waiting to retest all-time-highs near $2,000. Is Gold to $1800 in 2020 possible??? Geo-political tensions combined with global debt and growth concerns could be the perfect concoction for such an eventual move for Gold.
Gold continues its tear despite the equity market rally and Fed pivoting on interest rate hikes. Investors are not convinced that markets are set to rebound long-term, thus getting more Gold exposure despite Tom Lee @Fundstrat and many other analysts calling for all-time highs and double digit returns for equities rest of 2019. The dollar is showing signs of weakness which helps Gold.
The elephant in the room is China/US trade deal. March 1st is a significant date as this marks when the US trade tariffs against China will rise from 10% to 25% if no deal is made. If no deal is made (which is unlikely) you can imagine what kind of impact this will have on equity and commodity markets the very next day. Investors will flock to Gold, the US Dollar and some are questioning whether such an event would fuel the next Bitcoin rally. Van Eck has confirmed that Bitcoin did take away market share from Gold in 2016-2017 and that they are competitors, but have since given the reigns back to Gold due to the crypto-winter slump.
Things to watch for in 2019 that would impact Gold:
US Government Shutdowns
Brexit
China GDP - expected to slow
Geo-Political risks between US/Rus/China/Japan/N. Korea/Syria/Iran
US Dollar - showing signs of weakness
Bitcoin Rally - Mike Novogratz says 8k is possible in Q4 and says institutional dipping toes in then
Fed Interest Rate Hikes - most analysts leaning towards no more hikes for 2019
Regards,
Bobby