Perseus

Gold long continued.

Long
FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
Today we saw a "drop" of $5. Of course that's all it takes for the bears to flood TV with their sub 1200 predictions (they'd probably just be happy to close their current underwater positions at BE).

One of the main issues people are having, is that they think this rally is solely due to the tensions with North Korea. As we've all seen with political tensions like this, every gold spike is given back. These "events" do not ever lead to held gains. To anyone who wasn't blind, you could clearly see there was a lot of momentum building under gold , and it was only a matter of time before we breached above the 1300 level. This was a very obvious trade, as long as you didn't have a predetermined bias.

If this was purely a safe-haven trade, then we would have seen a stock market decline, and we would have seen heavy buying in the yen. If you take a look at the USDJPY , we did not make a new low in this currency pairing, yet we made a significant new high on the year in gold . That alone should tell you this run was not due the "NK scare".

The USD, along with fiat currencies in general, are dying. With China banning ICO's, the country will turn to gold as an alternative to fiat currency. This baby gold bull during 2017 is due to people wanting to get out of fiat currencies (especially the USD), not because NK is doing what it's always done.

With that being said, there are always small corrections during bull runs, and this bull run won't be an exception. IF we are to drop, and that is an IF, the two main buying zones will be the blue boxes on my chart. (1318-1322, and 1303-1307)

GL to both sides of this trade.
Comment: We've now reached the lower buying zone.

Wednesday will be volatile, but we won't have a sustained move 1300.

This is very much a healthy bull, and consolidating above 1300 is a great sign.
Comment: Will re-chart and publish a new idea after work today.

Comments

Nice
+1 Reply
Perseus YX-Choi
@YX-Choi, Thanks!
Reply
LOL. What a perfect call.
Reply
Perseus chartwatchers
@chartwatchers, Noted I was wrong in my next call...
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Thanks for a good update..agree 100% ..as to my previous comments where i was telling about building large positions in GDXJ and JNUG when lots of novice traders stayed on sidelines believing bank paid analysts and their hairdressers that Gold would dip below 1200..i have not sold any shares despite them being very ..very green..when Gold after so many attempts broke through phycological and technical barrier of 1300..i started adding more ,especially to JNUG...juniors are still amazingly cheap and any,even minor corrections in DOW would send them flying..and this can happen ,in my humble view,much sooner than we all believe..
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Perseus leonarddavidson60
@leonarddavidson60, I agree very much. Minors (especially juniors) have not reflected the recent strength in gold and are still of great value.
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