💡$XAUUSD (GOLD) 💛A return to the safe haven? 💰+7%🏌️♂️
📖There has been an uptick in the 10-year treasury note yield, breaking out of resistance formed in June. A rise in bond yields is often a sign of potential weakness for precious metals like gold. However, the rapid printing of dollars of the US fed may sustain bullish arguments for Gold, as investors become more concerned with the weakening Dollar. There is also concern that some investors may be hedging with cryptocurrencies, like Bitcoin, rather than in precious metals. However, investors who are unwilling to accept the extreme volatility in Bitcoin are likely to gravitate to precious metals.
📈 Gold is down 13% from it's all time highs of $2075, after a stellar run of 42% as investors fled to the safe haven asset in light of the CV19 pandemic. A contributing factor to Golds subsequent decline may be the surprise overextended rally of stocks. Gold has completed a 0.618 Fib retracement from its 1 December $1776 lows and 6 January $1919 highs, with price now at $1831. Gold is currently still in a bearish price channel, but is being supported by a longer term bullish trendline. Should Gold break out of this level, and remain supported by the 200 day SMA and bullish trend line, Gold could rally to the $2000 psychological level. There is the previous double top pattern to watch out for though. Traders should watch for todays candle close, currently, it is looking like a hammer, a signature reversal canldlestick.
🔎This is not financial advice. Always do your own research and due diligence.
📈 Gold is down 13% from it's all time highs of $2075, after a stellar run of 42% as investors fled to the safe haven asset in light of the CV19 pandemic. A contributing factor to Golds subsequent decline may be the surprise overextended rally of stocks. Gold has completed a 0.618 Fib retracement from its 1 December $1776 lows and 6 January $1919 highs, with price now at $1831. Gold is currently still in a bearish price channel, but is being supported by a longer term bullish trendline. Should Gold break out of this level, and remain supported by the 200 day SMA and bullish trend line, Gold could rally to the $2000 psychological level. There is the previous double top pattern to watch out for though. Traders should watch for todays candle close, currently, it is looking like a hammer, a signature reversal canldlestick.
🔎This is not financial advice. Always do your own research and due diligence.
Order cancelled:
Gold failed to make a nice green candle close above the declining trendline therefore invalidating this trade. Always wait for confirmation before entering a trade.