Close to short term daily support .. we see it break and 1640 might well be the next supportAttachment 11665
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Close to short term daily support .. we see it break and 1640 might well be the next supportAttachment 11665
Yes it does look a bit shabby in the short term. There was a lot of resistance at 1700 and that was taken out by about 3% when it went up to about 1750 on the weekly chart. Then it retraced back through support at 1700 to 1684, which is about 1% below 1700. I think that POG will try and regain 1700, but it depends on US$ index and Trump etc etc. I am not panicking yet. Draw up a monthly chart, it has been rising since the beginning of 2016.
Nothing a few days of volatility couldn't fix. 1yr trend looks very good for gold.
POG shaping up for another monthly high and closing in on $US1800.
With POG closing overnight above US$ 1774 at the end of the quarter that is the highest ever quarterly close. There is still significant resistance at US$ 1800.
Broken trough atpit. $1802.20 oz atm. re a 9 year high.
Plenty more to come $1900oz-$2000oz range the next step later this year....
Dimitri Zabelin at DailyFx.com recently published this ...
https://www.dailyfx.com/forex/fundam...-Pandemic.html
Colin Twiggs response was as follows:
Dimitri’s reasoning is:
- Gold may fall if a second wave of the virus dampens inflation prospects.
- Demand for safe haven assets could boost the Dollar relative to Gold.
- Instability in financial markets could see a sell-off in Gold as in early March 2020.
My comments are:
- Gold is driven by the strength of the Dollar, not inflation, and even does relatively well during deflationary periods.
- Demand for safe haven assets would boost both the Dollar and Gold. Gold is the #1 safe haven asset and massive QE by the Fed is likely to diminish the appeal of holding Dollars, boosting Gold.
- The March sell-off was a special case with risk parity funds forced to sell Gold as well as bonds and equities, and is unlikely to repeat, especially with the Fed now on the alert.
Finally, if we look at the long-term trend, Gold has outperformed the Dollar since mid-2019 and there is no sign of that changing.