GOLD Pullback to 1625.25| Downtrend in the making| 3March2020
GOLD IS DEVELOPING A NEW BEARISHNESS DOWNTREND
1586.55 start with a new robust demand towards 1625.25 after a 'selling climax'. Is this is a new beginning of a Gold downtrend? Most of the trader selling Gold due to cover their margin lost at Dow Jones market crash. The coronavirus is in the critical first wave development. The market crash has send down to Gold due investors selling. China try to cover the pandemic to not let the world know how bad it is. The pandemic is now spreading faster and penetrated to the South Korea, Iran, Japan and some of Europe countries like Italy.
Investors dump stocks as fears mount that outbreak has not been contained and investors scramble to reassess impacts. As investors punished stocks and oil, they fled towards safe-haven assets like gold, government bonds and select currencies. Gold, which is historically seen as the safest of bets in troubled and uncertain times, was sent on a roller coaster on Friday.
While the Gold set low to 1586.55, this would be the very good from all of the investor to start to pump up gold again as asset in the future. Benefit from the coronavirus was the GOLD will pushed lower thus the lower price in GOLD would be the discounted price to buy from below intrinsic value at the cheapest price. It is an odd moment for gold to be tumbling. One of the oldest and most-trusted safe havens in times of crises, gold typically rallies amid nasty stock sell-offs like the one that has gripped the world this week. So its plunge Friday -- it fell as much as 5%, the most in almost seven years -- caught many traders flat-footed and scrambling for explanations as to what had just happened. The most often heard of them: Gold investors don't want to sell but are forced to cover the losses in other asset classes. It first started with forced selling from equity investors who also sold their gold positions to cover their losses in equities and also to cover margin calls.
For me, selling price is much more easier to happen rather than to push upward. The historical gain on the past last month February 2020 has been erased within 1 week period. The buying plan to get the GOLD push forward higher will take sometimes gaining periodically when there is nothing major event impacted the gold and more lowest interest rate could help. Looking forecast 1.75% to go 1.50% on 17-18 March 2020 Fed FOMC plan.
Gold is forming a bearish downtrend for the first time in history will to be continue. Robust demand to 1625.25 before GOLD will pushing downward to cover the economy from fear of margin call stock from investor will be continue.
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By Zezu Zaza
1586.55 start with a new robust demand towards 1625.25 after a 'selling climax'. Is this is a new beginning of a Gold downtrend? Most of the trader selling Gold due to cover their margin lost at Dow Jones market crash. The coronavirus is in the critical first wave development. The market crash has send down to Gold due investors selling. China try to cover the pandemic to not let the world know how bad it is. The pandemic is now spreading faster and penetrated to the South Korea, Iran, Japan and some of Europe countries like Italy.
Investors dump stocks as fears mount that outbreak has not been contained and investors scramble to reassess impacts. As investors punished stocks and oil, they fled towards safe-haven assets like gold, government bonds and select currencies. Gold, which is historically seen as the safest of bets in troubled and uncertain times, was sent on a roller coaster on Friday.
While the Gold set low to 1586.55, this would be the very good from all of the investor to start to pump up gold again as asset in the future. Benefit from the coronavirus was the GOLD will pushed lower thus the lower price in GOLD would be the discounted price to buy from below intrinsic value at the cheapest price. It is an odd moment for gold to be tumbling. One of the oldest and most-trusted safe havens in times of crises, gold typically rallies amid nasty stock sell-offs like the one that has gripped the world this week. So its plunge Friday -- it fell as much as 5%, the most in almost seven years -- caught many traders flat-footed and scrambling for explanations as to what had just happened. The most often heard of them: Gold investors don't want to sell but are forced to cover the losses in other asset classes. It first started with forced selling from equity investors who also sold their gold positions to cover their losses in equities and also to cover margin calls.
For me, selling price is much more easier to happen rather than to push upward. The historical gain on the past last month February 2020 has been erased within 1 week period. The buying plan to get the GOLD push forward higher will take sometimes gaining periodically when there is nothing major event impacted the gold and more lowest interest rate could help. Looking forecast 1.75% to go 1.50% on 17-18 March 2020 Fed FOMC plan.
Gold is forming a bearish downtrend for the first time in history will to be continue. Robust demand to 1625.25 before GOLD will pushing downward to cover the economy from fear of margin call stock from investor will be continue.
Dont forget to subscribe if you like the post. Thumbs up.
By Zezu Zaza
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