Gold has seemingly taken a mini-crash - or rather correction in a daily trend. Some have bailed out, and I can't blame them if they made their money with the big pump north. So what's next?
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Gold is definitely doing funny stuff on 1H to 2H timeframes. Uncharacteristically, as the US Dollar strengthens, Gold is also moving north. The usual pattern is an inverse relationship. To me this means that people are reaching more to gold to protect against a stock market crash.
I think gold will make a nice bullish run next week 👌
Captain_Walker
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@Apex_Managed_Capital, I think the probabilities emerging from the price action and technical picture is for the north (still). I suspect that a bunch of gold investors got cold feet at the top where there is a zone of congestion around 1340 (not unexpected at all). Then the US-Dollar (index) rocked north as it starts the next possible round of scalloping. So those who made money from the start of the trend took their profits - and I would too if I got a nice slice of that recent trend push. This is just human nature and good common sense. Why hold on if you have made a sizeable chunk of equity - time to liquidate (at the area of congestion 1340-ish). Then there was Wall Street and other markets apparently looking madly bullish, decreasing interest in gold for some investors - significant effect I think.
But loads of people have not as yet worked out that there is mega heavy selling of stocks and that the markets are being kept afloat by the Plunge Protection Team. (But that's for my next post). Fear, greed and hope also drives Wall Street (which then orchestrates other markets globally). So - the point is that what happens on Wall Street also influences in part minds investing in Gold. There is really little sound reason for Wall Street to be pumping north when the world and US economy is in chaos. So - at some point - and I don't know when the PPT is gonna run out of steam, the bubble pops and Gold shall reign again.
ApexFX_Pro
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@Captain_Walker, I like your style of thinking, I have also done a few post on how the Economy is in trouble and a recession is just around the corner but people cant see it as the wool is been pulled over there eyes as usual.
Captain_Walker
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@Apex_Managed_Capital, Many thanks. On 23rd Feb I warned about 'profit taking' on Gold. But crowd sentiment was for the north. People tend to follow crowds, which is fine. Me, you, and other smart traders must love these folk, cuz they put dosh into our pockets. LOL. 😀 🙇🏼
The markets (or rather people charging north), have forgotten about debt and global economic deflation. Some bloke in power who is in deep trouble in America has hypnotised loads of folk. Add the PPT to the equation and we see the charge north. Who gets rich from the impending crash- should it happen? The big boys. They've pumped it north and all now they're shorting big time, to snatch money from those who have been hypnotised by their moves. The rich shall steal from the poor. I didn't invent the system. I just exploit it - legally of course.