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Gold could rise above #2.000$ per ounce (Medium-term) because Federal Reserve left the rate unchanged. Last #5 Fed announcements, market speculators has moved Gold upwards within #2 sessions #5 out #5 times, and I see no reason why that wouldn’t be the case at the moment. Global uncertainty has increased safe-haven demand for Gold and driven prices lower. DX started recovering the lost ground (U.S. lowered the Price since they needed weak DX for money-printing plan) and would be the third key psychological level the Gold has breached in a year: it edged over #1,927.80 in July but Short-term correction should be ahead. Gold , long known as a safe-haven asset, has spiked this year as global uncertainty has pushed Investors out of riskier assets like Stock markets. Other safe-haven assets have also rallied. Bond notes rally has pushed US Treasury yields to new Lows, and even the DX didn’t maintained its strength amongst market volatility . The weak economy global outlook- driven largely by the ever-escalating trade war between the US and China (Covid-19 aswell) - is creating fear in the markets that the U.S. and other global economies could be nearing a recession. The Fed and Chairman Powell have repeatedly said that they're watching the data and are ready to step in as necessary with further rate cuts. Personally, leaving the rate unchanged will lead nominal yields to fall push real yields near zero. This raises the appeal of holding Gold given economic uncertainty. As the price of Gold rises, it loses opportunity cost, and safe-haven demand for the asset increases. Demand by my calculations is likely to grow further with rising expectations of economic deceleration given the state of U.S. - China trade tensions which are in worst state since #1990’s. Holdings of Gold in ETFs are heading toward highs last seen in #2012 which gives me straight indication that World Crisis is not far away. Despite this week's strong response to #1,980.80, Gold failed to maintain those high levels yesterday and was rejected on the Hourly 4 Resistance. Yet, it still found Support on the Daily chart Higher Low, which remains Neutral and has high potential to contain this Bullish pullback. I engaged Intra-day Buy order with Top of Hourly 1 Bollinger Bands as an Target (#1,970.80). Statistic is on my side.
My Telegram channel: https://t.me/goldenBear88
Professional market analyst and Financial consultant with over #8 Years experience. I specialize Gold market using specific proven mathematical models. I provide market insights and Professional guidance.
Professional market analyst and Financial consultant with over #8 Years experience. I specialize Gold market using specific proven mathematical models. I provide market insights and Professional guidance.
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