The Next Big Bubble?
If we refer to the history of gold over the last few years, it can be seen that this new all-time high at 2169 on gold makes absolutely no sense.
However, this is just my opinion.
If we refer to the left side of the chart on August 06, 2020, the price reached an all-time high which was never seen before during Covid 19.
On March 8, 2022 - War (Ukraine - Russia)
The price failed to rise above 2075.
May 03, 2023 - Banking crisis in the US and Switzerland
The price failed to rise above 2075.
On October 7, 2023 - Israel - Hamas conflict
Another important moment again and the price stopped again near 2075
On December 04, 2023 - SPECULATION about the FED rate cut
After a long time the price finally broke out at 2075 reaching a new all time high at 20145 for no reason.
So, if we refer to history, GOLD reached its all-time high again around 2169 without any solid reason. It is rising above the most important historical moments of the last 4 years only on speculation that the FED will cut rates.
Given that inflation is slowing down it is normal for the FED to cut the rates.
On the other hand, GOLD is losing its position as a value holder at a time when the current global conditions are not like the last few years. So it doesn't make sense to keep investing in gold at these price levels at a time that everything looks more stable for all major economies.
Why did GOLD bounce this time?
In reality, there was nothing related to these movements.
Considering the current value of gold and the global economy, which is returning to normal conditions, it makes more sense to take profits from GOLD and invest in undervalued stocks instead of holding long gold positions.
To sum up my opinion, there was nothing more important than the events we had to deal with during the past year.
The FOMC rate cut speculative news, which is pushing the gold price to these levels may just be the next big bubble and we have to be careful.
Surprisingly, BTC and GOLD suddenly moved at the same time for no reason.
You may find further details in the chart!
Thank you and Good Luck!
❤️PS: Please support with a like or comment if you find this analysis useful for your trading day❤️
If we refer to the history of gold over the last few years, it can be seen that this new all-time high at 2169 on gold makes absolutely no sense.
However, this is just my opinion.
If we refer to the left side of the chart on August 06, 2020, the price reached an all-time high which was never seen before during Covid 19.
On March 8, 2022 - War (Ukraine - Russia)
The price failed to rise above 2075.
May 03, 2023 - Banking crisis in the US and Switzerland
The price failed to rise above 2075.
On October 7, 2023 - Israel - Hamas conflict
Another important moment again and the price stopped again near 2075
On December 04, 2023 - SPECULATION about the FED rate cut
After a long time the price finally broke out at 2075 reaching a new all time high at 20145 for no reason.
So, if we refer to history, GOLD reached its all-time high again around 2169 without any solid reason. It is rising above the most important historical moments of the last 4 years only on speculation that the FED will cut rates.
Given that inflation is slowing down it is normal for the FED to cut the rates.
On the other hand, GOLD is losing its position as a value holder at a time when the current global conditions are not like the last few years. So it doesn't make sense to keep investing in gold at these price levels at a time that everything looks more stable for all major economies.
Why did GOLD bounce this time?
In reality, there was nothing related to these movements.
Considering the current value of gold and the global economy, which is returning to normal conditions, it makes more sense to take profits from GOLD and invest in undervalued stocks instead of holding long gold positions.
To sum up my opinion, there was nothing more important than the events we had to deal with during the past year.
The FOMC rate cut speculative news, which is pushing the gold price to these levels may just be the next big bubble and we have to be careful.
Surprisingly, BTC and GOLD suddenly moved at the same time for no reason.
You may find further details in the chart!
Thank you and Good Luck!
❤️PS: Please support with a like or comment if you find this analysis useful for your trading day❤️
Comment:
✅MY Free Signals
t.me/TradingPuzzles
✅Personal Telegram
t.me/KlejdiCuni
✅YouTube
www.youtube.com/@TradingPuzzles
✅My FX Broker
bit.ly/49VySJF
t.me/TradingPuzzles
✅Personal Telegram
t.me/KlejdiCuni
✅YouTube
www.youtube.com/@TradingPuzzles
✅My FX Broker
bit.ly/49VySJF
Nonfarm Payrolls rose by 275,000 in February, This reading surpassed the market expectation for an increase of 200,000.
The previous month's NFP data were reported to be 229K
🚨Very strange...USD is weak on strong data and weak on bad data
🚨 Be careful as I think GOLD and USD trapped many traders in long trades and now may move down.