Hi All,
It's a bold call given the geopolitical environment we are in right now. There is a lot of uncertainty in the market not only due to the USA vs China trade war but also because of weakening US production and the recession level of PMI indices in the Eurozone in the manufacturing and service sectors.
Add to this record high levels of government, corporate and consumer debt + an inverted yield-curve and even a moron would recognize that the world economy is in BIG trouble.
Normally in this situation tons of money should flow into the tiny sector of precious metals... but after a well deserved, long awaited rally I think we are heading toward a short-term retracement.
From a TECHNICAL persective:
From a GEOPOLITICAL perspective:
To sum up, I think gold will retest EMA 200 and the 1300 $ price level. We will reach the bottom probably in December (to know why look at my previous analysis "THE MASTERPLAN for GOLD"). When it happens I will be heavily long on gold - it may be the last time we will ever see such low price levels.
GL & HF ;)
and watch Mike Maloney's videos on yt ;)
It's a bold call given the geopolitical environment we are in right now. There is a lot of uncertainty in the market not only due to the USA vs China trade war but also because of weakening US production and the recession level of PMI indices in the Eurozone in the manufacturing and service sectors.
Add to this record high levels of government, corporate and consumer debt + an inverted yield-curve and even a moron would recognize that the world economy is in BIG trouble.
Normally in this situation tons of money should flow into the tiny sector of precious metals... but after a well deserved, long awaited rally I think we are heading toward a short-term retracement.
From a TECHNICAL persective:
- RSI is extremely overbought! this is a record high level - seen only 4 times before (since the 80's).
- Stochastic also overbought, already turning downward.
- We have a nice Deep Crab Harmonic Pattern in place
- Declining volume level.
- Price action. We printed a nice bearish pin bar last week. This one is closing with a long-legged doji candle. Bearish signal.
From a GEOPOLITICAL perspective:
- Trump will soon let us know about a positive breakout in the negotiations with China (he doesn't want the stock market to plunge any further- he wants record all time highs before next elections that will take place on 3rd November 2020).
- China still needs to accumulate physical gold - they can easily dump it's price on the "paper" market and then start another round of shopping.
To sum up, I think gold will retest EMA 200 and the 1300 $ price level. We will reach the bottom probably in December (to know why look at my previous analysis "THE MASTERPLAN for GOLD"). When it happens I will be heavily long on gold - it may be the last time we will ever see such low price levels.
GL & HF ;)
and watch Mike Maloney's videos on yt ;)
