Latest Geopolitical News to Drive Gold Higher Next Week
With bears surging from Thursday and Friday's sell-off in Gold to risk-increased appetites on more pump on the USA-China trade front, it seems that a few key geopolitical headlines will push Gold forward for next week. It is quite likely many of the shorts from last week that were held through the weekend could get ravaged.
A bounce to 1544 by the end of Monday is certainly possible, however a more conservative estimate is 1527. It is also important to note: a) the ability of Gold to hold above the lowest corrective wave at 1502, and b) the building bullish flag that formed in the last 30 minutes of the market and in post-market to finish at 1507, likely indicating a bounce on Monday.
While I outlined a possible quick bearish scenario in my last idea it is unlikely this will happen as a result of a few geopolitical escalations:
1) Trump has escalated issues with the Taliban and Afghanistan threatening that he could with a war with them in a week and also cancelled "peace" meetings today.
2) Brexit issues continue to remain uncertain with a Minister recently quitting and calling Boris' agenda "political vandalism".
3) ECB is likely to ease and introduce QE this week likely putting further pressure on Powell to cut 25bps in two weeks.
As an aside, I am not expecting to reach 3000 SP unless Powell cuts at-least 25bps. I am expecting the general markets to work their way back into the trend-line and will likely reach above 3000 (and short squeeze higher) IF Powell cuts.
- zSplit
A bounce to 1544 by the end of Monday is certainly possible, however a more conservative estimate is 1527. It is also important to note: a) the ability of Gold to hold above the lowest corrective wave at 1502, and b) the building bullish flag that formed in the last 30 minutes of the market and in post-market to finish at 1507, likely indicating a bounce on Monday.
While I outlined a possible quick bearish scenario in my last idea it is unlikely this will happen as a result of a few geopolitical escalations:
1) Trump has escalated issues with the Taliban and Afghanistan threatening that he could with a war with them in a week and also cancelled "peace" meetings today.
2) Brexit issues continue to remain uncertain with a Minister recently quitting and calling Boris' agenda "political vandalism".
3) ECB is likely to ease and introduce QE this week likely putting further pressure on Powell to cut 25bps in two weeks.
As an aside, I am not expecting to reach 3000 SP unless Powell cuts at-least 25bps. I am expecting the general markets to work their way back into the trend-line and will likely reach above 3000 (and short squeeze higher) IF Powell cuts.
- zSplit
Wait until confirmation late tonight into tomorrow pre-dawn before making your decisions.
My long term position on Gold and Silver remains as very bullish.