Following the 2-year bull market in Precious Metals, Gold made it's way from 1200$ to new ATH at 2075$ per oz on spot in 2020, with pretty much clear print of HH and HL structure. If we look at the 1W XAUUSD chart there is nothing bearish about it, even with the resent month's sell-off, which in my opinion, due to be over. In market conditions like this, it's impossible to even guess where is the potential local bottom or local top, BUT I'll share a couple key points below why I think the local bottom for Gold could be potentially in, or is around the corner:
- Fundamentals for PM are probably the strongest since 2008 (Despite the fact that there are talks about dumping Gold for BTC from a couple big investors and fund managers, which makes sense to me, but will take at least another 20-30 years to get fully executed imo);
- DXY is at it's 2,5 Years Lows and it's about to melt down further into upcoming 2021;
- Doesn't matter who will end up in the US White House office, another stimulus is very likely to come in Q1-Q2 2020;
- Gold is way more cheaper than BTC if we're talking about safe haven assets, and it's a good point for a lot of people;
- Following recent failed weekly cycle with bull trap and big sell-off after, we probably got a necessary settlement reset - in 2-year bull run it's natural to see some distribution and rotation on HT;
- If we'll get another leg down, which is still on the table - anything around low 1700's is a strong buy.
From the long term perspective it's safe to say it is wise to start building a long position around current levels!
Do not hesitate to share your opinion in the comment section!
- Fundamentals for PM are probably the strongest since 2008 (Despite the fact that there are talks about dumping Gold for BTC from a couple big investors and fund managers, which makes sense to me, but will take at least another 20-30 years to get fully executed imo);
- DXY is at it's 2,5 Years Lows and it's about to melt down further into upcoming 2021;
- Doesn't matter who will end up in the US White House office, another stimulus is very likely to come in Q1-Q2 2020;
- Gold is way more cheaper than BTC if we're talking about safe haven assets, and it's a good point for a lot of people;
- Following recent failed weekly cycle with bull trap and big sell-off after, we probably got a necessary settlement reset - in 2-year bull run it's natural to see some distribution and rotation on HT;
- If we'll get another leg down, which is still on the table - anything around low 1700's is a strong buy.
From the long term perspective it's safe to say it is wise to start building a long position around current levels!
Do not hesitate to share your opinion in the comment section!
