GOLD analysis
From a graphical point of view, GOLD is currently inside a bullish channel, and, more broadly, in a flag. In theory, the flag suggests a continuation of the previous bearish trend, although, in recent months, technical analysis has worked only a few times. The price is back above the important resistance in the $ 1,240 area, and Friday has carried out what would appear to be a pullback.
By looking more in general the economic situation (and not only) we can note some very important aspects. The announced economic slowdown that seems to have begun. The weak Chinese macro data released this week have further driven investors out of the stock markets. As a consequence, there could be a return of interest on gold as a safe haven. When there is uncertainty in the stock markets (and more generally on an economic level), to benefit from it are gold, CHF and JPY.
Nevertheless, currently, the big gold investors are out of the market, as we can well see by observing the COT (Commitments of Traders), and this leaves ample room for volume and price growth. A negative aspect, the strong dollar. And the dollar has always been an enemy of commodities. Although, I believe that the growth of the dollar may have come to an end. Next week (Wednesday 19) the Fed will raise the interest rate for the fourth time. What already discounted by the market. Then we should see a drop in the greenback.
In conclusion, I think that gold can be a good investment in the coming months with a first target in the resistance area $ 1,295/1,310 and then the next in the area $ 1,355/$ 1,370. As long as the price remains within the channel, gold will keep a bullish tendency for me. Even more above $ 1,240.
By looking more in general the economic situation (and not only) we can note some very important aspects. The announced economic slowdown that seems to have begun. The weak Chinese macro data released this week have further driven investors out of the stock markets. As a consequence, there could be a return of interest on gold as a safe haven. When there is uncertainty in the stock markets (and more generally on an economic level), to benefit from it are gold, CHF and JPY.
Nevertheless, currently, the big gold investors are out of the market, as we can well see by observing the COT (Commitments of Traders), and this leaves ample room for volume and price growth. A negative aspect, the strong dollar. And the dollar has always been an enemy of commodities. Although, I believe that the growth of the dollar may have come to an end. Next week (Wednesday 19) the Fed will raise the interest rate for the fourth time. What already discounted by the market. Then we should see a drop in the greenback.
In conclusion, I think that gold can be a good investment in the coming months with a first target in the resistance area $ 1,295/1,310 and then the next in the area $ 1,355/$ 1,370. As long as the price remains within the channel, gold will keep a bullish tendency for me. Even more above $ 1,240.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.