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
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🚨Breaking 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.
You can share your opinion below! It might help us all understand this situation better! Thank you:)
realnus
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Governments are buying dude.
KlejdiCuni
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@realnus I think the same as you. They are doing this hidden in the bushes.
pirrom
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Have you considered that the BRICS block, especially China's and India's CB are buying massive amounts of Gold to back their currency?
KlejdiCuni
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@pirrom As long as it is not discussed too much in the market then it is not China:)... probably someone else as big as China:)
GoatOfWallStreet
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I think smart money nows that the current market valuation is outlandish and will dump sooner or later. Gold is a hedge about that
KlejdiCuni
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@GoatOfWallStreet, Probably yes. The problem is that this speculation is not over yet and when it happens it will create other problems with the liquidity that will be released. Thanks for sharing your opinion.
@anand1988, Thank you so much for sharing. It was really helpful. I'm sorry to say it, but the retail traders are covering the problems of major economies with the rally in GOLD. They manipulate everything when they want. This is the sad truth
anand1988
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yaa all retail traders are sitting in SELL here in Mumbai and Dubai
It might help us all understand this situation better!
Thank you:)