There is one point I do agree with you on though - namely that of printing money (it’s not money printing it’s reserve printing) which has not led to an increase in the velocity of money.
(Surprise surprise, QE sucks money OUT of the system)
Which kind of proves the gold bugs wrong on another thesis, one of hyperinflation.
And for the record, I am pro-gold, I am just sick and tired of all the shills who put the fear of death into investors so they can make a quick buck.
They are all at it - even Steve Bannon (who I admire like no other)
At no point did I say investors would get rich over night, my time frame (well actually not mine) was 5 years. I am aware Jim Rickard has had some pretty radical views in previous books, however a good portion of the predictions in his latest edit have already come true and I feel many of his theories make sense. Have you read it, or are you going off online reviews? I am by no means a gold bug (I am more of a crypto fanatic to be fair), nor am I investing my life savings into Gold, however I do feel the chances of the price of gold rising substantially outweigh the chance of it decreasing. Hence I will DCA into it. It’s not that I expect to ‘get rich’ either, but feel it’s a relatively safe investment to at least preserve capital and adds diversification. As you say, QE being the first reason and second being the fact that it has not done much in the past decade, tells me it is due for movement. History rhymes. Why now? We are witnessing unprecedented unfold of events. At the end of the day, we are all just here speculating, none of us know… If it does go to $10-$14K, at least I won’t be watching from the sidelines. You have to be in it to win it…
As well these days we have crypto currencies to factor in, the fact the governments holding tonnes of gold in their vaults would like the price of the limited physical commodity to rise in price. They need it higher to compete with the potential of what crypto can do for the average person on the street. Something of which they can have some sort of control over. But as everyone is said we are all speculating so lets just trade it daily and make money from it
In the last hours of last week’s trading session, precious metal Gold had bounces to 1781 but then fell back to $26 to 1755, closing the day session with a bullish candle with a long beard. along with it is also closing the weekly candle with a bearish candle . With the closing of the weekly candle as well as the daily candle, it shows that the upward force is weakened, so in my opinion in the beginning of today’s session, the selling pressure of this precious metal will appear, selling priority will be today’s strategy. .
Moving to the H4 time frame, we can see that apart from the last weekend’s sweeping candle, the range is still in the sideways zone and has not shown any signs of breaking out. So around 1765 is still an area where we can establish a sell position with the target being the lower band of this sideway 1750-1755.
GOLD :-
In yesterday’s session, precious metal Gold fluctuated in a rather narrow range of 1761-
1750 ($11), closing the session with a bearish candle, but the drop was not significant, just moving sideways in the morning. the range is narrow and only when the two bands are broken will the trend be really clear.
On the daily chart time frame we can see that Gold price is under downward pressure by the 20-day MA as the price is clinging to the descending MA20 and I personally lean more towards the downtrend of the precious metal Gold. In the H4 time frame we can see that Gold is currently in the support of this sideways range and if the price breaks 1748-1750 to the downside, 1736-1740 will be the next level Gold is headed.
Any theories on what happened yesterday? I was one of the many who waited for it to drop. Maybe big banks bought gold and hold it? Certainly all the people this morning screaming that a big sell is comming certainly have no idea what they talk about. If it doesnt go bearish yesterday it wont in the near future. Someone or some planned to make this go up and they still have interest to make this go higher. I certainly made good bank today trading the uptrend on the 5 minute.
Interesting last couple of days for Gold. Big pump, rejection at 200 Daily SMA and the a big drop. The positive is that the PSAR is still bullish so let`s see.
Gold had rejection at 1870.00. It has been heading towards the South with strong bearish momentum. However, the price is still within an up trending trendline’s support. The buyers may find an opportunity to go long if the price produces a Double Bottom around that trendline’s support. Let us wait and watch.
I don’t trade commodities much - I mostly trade forex and US indices. but occasionally I see powerful trends in one or other which I like to follow periodically.
In this regard I have been spreadbetting BP as a more affordable proxy for Brent Crude.
Is there a similar proxy for gold?
(I have heard in the past that EUR/USD correlates with Gold but from their charts I don’t find that idea very convincing.)
Thanks.
