A Monthly and weekly look at GoldGreetings. Gold is a sleeping giant that rolled over in its sleep beginning in 2018 and now most may have thought that it has settled down, but it really has just put on its boots and is about to get going in earnest.
The similarities between 2008 and our current situation should be obvious with both the charts as well as the news cycle justifying ever ending inflating the money supply and destroying our savings for our own good (they say).
Gold went on a banger of an uptrend and exceeded its all time high but then pulled back with a financial shock and disease (H1N1, Corona, etc) to retest its previous All Time high. The big picture is very bullish but will become even more so when we look at the current price action on the weekly.
The weekly chart shows a bull flag in black, and within that bullflag we have a nested W bottom against the flag support. To make things even more bullish we have quite a bit of bullish divergence on the MACD and histogram. I am sure you could pull up a whole lot more indicators but this is good enough. The key point is the price action is also against the weekly bollingerband. Very limited downside, nested weekly structures and a very bullish monlth macro structure suggest a whole lot of upside over the next year or two for investors.
Ultimate levels to watch are the fib channel levels. Hitting play on the main chart in a year or two will be kinda a neat exercise to see how well this post does. Degenerate Traders would use a stop loss system based on the W pattern and would look to play the interactions of the bollinger band and flag resistance flipping to support.
My personal interest in gold right now is contemplating using PAXG to "tether up" as opposed to usd stable coins. If I see some risk in the market and gold happens to look good while a specific crypto coin looks at risk I will look at going PAXG instead of USDC or Tether.
I have decided to only use one linked idea for this post. It is with regards to the Dollar Milk Shake Theory put out by Brent Johnson of Santiago Capital and the idea expounds on the theory.
