GOLD: Ascending Geopolitical Risk and Central Bank Demand

Feb 8

GOLD: Ascending Geopolitical Risk and Central Bank Demand

At the end of January, gold faced its biggest correction of the past year, which was almost -21%.

After a pause, it seems that Gold is in a corrective moment, and perhaps the downtrend is over.

However, a larger bullish wave may soon resume if the US and Iran do not reach an agreement soon, as Tehran remains firm on nuclear enrichment.

On the other hand, official reports from China show that China's gold reserves increased further, continuing to buy for the 15th consecutive month.

There is a high possibility that the price will develop as shown in the chart.

You may find more details in the chart.
Thank you and good luck! 🍀

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Feb 9

Trade active

Feb 9

Note

From the analysis I shared last night, gold easily crossed the 5000 zone and has now reached 5047.

Gold is trading above $5000, indicating the presence of an increase in bullish momentum. Given that the US dollar is opening weaker ahead of the NFP data, this is favoring this increase a little more.

As reported by Bloomberg, China is urging banks to reduce exposure to US Treasury bonds due to "market volatility".

This is also creating more pressure on the weakness of the US dollar and gold is strengthening again in line with all the geopolitical and fundamental factors.

I think gold has just started the movement and unless we face another sell-off (manipulation), then all of the above should support the increase more.