We can see GOLD has been making clear higher highs and higher lows, perfectly rejecting the 61.8 FIB level. We can also see that Gold is struggling to break out of this range which started from an inside bar move (on the H8 TF) on the left-hand side (first position). I believe gold will drop down to demand (lining up with the 78.6 fib level) where we will see strong buying pressure come in to play. Here I am looking to enter a long position on the metal where I will take profit around the 1796 zone.
Fundamentals;
- Concerns over the new omicron variant and whether the world go back into lockdown has a lot of people worrying.
- Countries like the UK and places in Europe are thinking of implementing tighter restrictions on what people can and cannot do which can have a bad impact on the Global economy. Investors may look at putting their funds into 'safe havens' like the US Dollar, Gold, and the Yen.
- If Russia invade Ukraine, we are likely going to see the US intervene which is likely to cause the price of Gold to rise (again, safe asset for investors).
The fundamentals are likely going to have a longer-term impact on Gold however this short-term long position can turn into a swing trade if we get some attractive buying pressure.
Long term target; $2000 / ounce
Fundamentals;
- Concerns over the new omicron variant and whether the world go back into lockdown has a lot of people worrying.
- Countries like the UK and places in Europe are thinking of implementing tighter restrictions on what people can and cannot do which can have a bad impact on the Global economy. Investors may look at putting their funds into 'safe havens' like the US Dollar, Gold, and the Yen.
- If Russia invade Ukraine, we are likely going to see the US intervene which is likely to cause the price of Gold to rise (again, safe asset for investors).
The fundamentals are likely going to have a longer-term impact on Gold however this short-term long position can turn into a swing trade if we get some attractive buying pressure.
Long term target; $2000 / ounce
