EUPHORIA AMONG INVESTORS AND TRADERS HAS STARTED
Please, note-our both positions have been closed as stopped has reached and at the moment we are not holding any position in our portfolio.
The federal reserve FOMC minutes have been released today which helps to improve The yellow metal chart-based buying even further. Gold prices reached their 10-month high today where silver is trading around $16 at the time of writing this report, we are expecting the surge in the white metal prices as well at least for the short term(Silver is known as a proxy for gold).In today’s FOMC meeting members expressed their concern regarding risks to U.S economic expansion however majority sees fewer risk regarding this issue. The suggestion of the slowdown in future interest hikes was also added in today’s meeting. The recent dovish move and statement by the fed have been a significantly bullish underlying factor for several commodity markets, including the precious metals however the major catalyst for the parabolic run in the precious metal sector especially gold is The Major sell-off we have witnessed in the USDX.
The major news is coming from the U.S-China trade talks where the market appears to be more optimistic in the upcoming trade talk which will be held in Washington,D.C. President Trump on Tuesday said there could be flexibility on the early-March deadline for more U.S. trade tariffs to be imposed on China. China is already threatening that if the U.S will impose new tariffs economic consequences would be catastrophic.
On the other side, U.K Brexit story doesn’t seem to end very soon as news is coming out that four MP’S dropped their support with the prime minister Theresa, The deadline is approaching for Brexit but still, there is no solution in hand.
TECHNICALS-The major upside resistance is at around $1365 which gold is trying to surpass from 5 years without any success and if the yellow metal reaches the same level that would be it’s fourth attempt, At the moment we can feel the euphoria among investors and traders towards investing in precious metal sector which could drive the prices even further, if price will break above $1370 level $1400 level will be easily in the cards. However even after having a sense of euphoria among investors we are not adding any long positions as we don’t think it will be justified from the risk and reward perspective,However if prices will retest the support of $1310-$1320 we could think to go long–At the time one may think to open a long position in precious metals but we don’t think it will be justified from the risk and reward perspective as it’s been more than 5 years since yellow metal is trying to break above 1365 critical resistance without any success-at the time the technical picture of precious metals is not supporting the fundamentals.
“The euphoria among investors and traders can easily take price up to $1365-1370 level but as we all know all parabolic run end up with the same result and right now gold is threatening a deep correction but still we would not like to add any positions in our portfolio until unless gold move even higher and then breakout below the key support which helps to add more confirmation to our short position”
The federal reserve FOMC minutes have been released today which helps to improve The yellow metal chart-based buying even further. Gold prices reached their 10-month high today where silver is trading around $16 at the time of writing this report, we are expecting the surge in the white metal prices as well at least for the short term(Silver is known as a proxy for gold).In today’s FOMC meeting members expressed their concern regarding risks to U.S economic expansion however majority sees fewer risk regarding this issue. The suggestion of the slowdown in future interest hikes was also added in today’s meeting. The recent dovish move and statement by the fed have been a significantly bullish underlying factor for several commodity markets, including the precious metals however the major catalyst for the parabolic run in the precious metal sector especially gold is The Major sell-off we have witnessed in the USDX.
The major news is coming from the U.S-China trade talks where the market appears to be more optimistic in the upcoming trade talk which will be held in Washington,D.C. President Trump on Tuesday said there could be flexibility on the early-March deadline for more U.S. trade tariffs to be imposed on China. China is already threatening that if the U.S will impose new tariffs economic consequences would be catastrophic.
On the other side, U.K Brexit story doesn’t seem to end very soon as news is coming out that four MP’S dropped their support with the prime minister Theresa, The deadline is approaching for Brexit but still, there is no solution in hand.
TECHNICALS-The major upside resistance is at around $1365 which gold is trying to surpass from 5 years without any success and if the yellow metal reaches the same level that would be it’s fourth attempt, At the moment we can feel the euphoria among investors and traders towards investing in precious metal sector which could drive the prices even further, if price will break above $1370 level $1400 level will be easily in the cards. However even after having a sense of euphoria among investors we are not adding any long positions as we don’t think it will be justified from the risk and reward perspective,However if prices will retest the support of $1310-$1320 we could think to go long–At the time one may think to open a long position in precious metals but we don’t think it will be justified from the risk and reward perspective as it’s been more than 5 years since yellow metal is trying to break above 1365 critical resistance without any success-at the time the technical picture of precious metals is not supporting the fundamentals.
“The euphoria among investors and traders can easily take price up to $1365-1370 level but as we all know all parabolic run end up with the same result and right now gold is threatening a deep correction but still we would not like to add any positions in our portfolio until unless gold move even higher and then breakout below the key support which helps to add more confirmation to our short position”
