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Goldfutures

Gold and Money Supply. Why Gold is a good long-term investment.Here we see the correlation of Gold (XAUUSD) and M1 (money supply composed of physical currency and coin, demand deposits etc). During the last two financial crises (DOTCOM and SUBPRIMES), the central bank raised the rates to support the stock market collapse and save the economy from recession. As you see when rates were raised and money supply spiked, Gold started rising as well as a counter to inflation. Similarly, Gold has spiked since March 2020 when the Fed announced the trillion dollar rescue package to counter the shattered demand from the COVID lockdown. In our opinion that makes Gold a necessity to any investor's portfolio on the long-term. ** If you like our free content follow our profile to get more daily ideas. ** Comments and likes are greatly appreciated.
FRED:WM1NSLong
by InvestingScope
1
XAUUSD: In need of a medium-term correction.Gold (XAUUSD) has been trading within a Channel Up since early April. The 1D chart remains bullish (RSI = 60.683, MACD = 14.370, ADX = 34.990) but the upper MA periods have started to turn bearish (MA5). The technical reason is that it hit the Higher High trend-line of the Channel Up. We expect to make a first Low near the previous Support at 1,750, rebound to the 0.618 Fibonacci retracement level and then resume the decline towards the inner Higher Low trend-line. Our Target Zone is 1,725 - 1,715. Notice that the same pattern has been formed on every Higher High formation. The price drops by roughly -2.40% then bounces back above the 0.618 Fibonacci and then dips more to the Inner Higher Low trend-line. ** If you like our free content follow our profile to get more daily ideas. ** Comments and likes are greatly appreciated.
FX_IDC:XAUUSDShort
by InvestingScope
1