Gold similarities between topsGold is usually seen as a safe haven when stocks are falling or when inflation is rising. Neither of those two things are happening right now.
Investors also are worried about a rise in U.S. layoffs as spiking coronavirus infections cause more businesses to shut down. Congress has yet to agree on more economic aid.
All that has increased uncertainty about the direction of the economy. And uncertainty is often seen as good for gold prices.
This was said back in 2011 in August right at the top, I do think this also applies to today's environment.
- Inflation Rate for January 2021 is 1.4
"Gold is considered a good hedge against inflation," he said, "But the increase in gold price has far outpaced inflation, especially during the last decade."
He noted that inflation has only picked up 2.4% on an annual basis during the last 10 years, but the price of the yellow metal has climbed more than 21% a year during the same time period.
Unless higher inflation -- to the tune of 10% a year -- is forthcoming, Thomas said gold prices are "clearly in a bubble."
Buffet's famous words:
The prices of stocks and U.S. houses have risen faster over time than gold. Buffett has called investors who buy gold when the price is rising, even during times of uncertainty, "foolish."
Conclusion:
Short term exuberance because of the expected economic aid package, this will lead to a spike which will form a double top.
Xausud
Gold-The completion of the first descending waveThere can be many scenarios for gold
One scenario is that the first downtrend has ended in the 240-minute chart and the corrective movement of the price can be in the range of $ 1892, and in continuation the downtrend can be expanded for the range of $ 1645.
On the daily chart, we are expecting the downtrend up to the range of $ 1645.
( Daily Chart )
Very Bearish on GoldExpecting to enter a sell position after gold attempts to make one last move to the upside.
I'm bearish on gold because in my opinion gold is overextended, looking at the larger time frames (weekly and monthly). Gold had a massive push to the upside now it's time to sell off some of that and this current retracement explains the bearish movement.
Price broke below the previous low which formally acted as a form of support. Now that that previous low has been broken, price made a retrace to test this area and it is now serving as a form of resistance.
This resistance (former support area) also correlates with the 50.0 fib level, which is the level we look to retrace to once we break a support/resistance level.
I am looking for price to ultimate fall near the 1700-1710 level. This area correlates to the -.27 fib level on the daily and the 61.8 fib level on the weekly time frame.
Descending triangle for Gold and initial targets of USD 1760The structure of Wave IV is in the form of a Double Zigzag pattern, probably the downtrend for gold will be extended up to the range of USD 1760.
In the second zigzag from b wave, the triangle pattern is re-formed and with the price crossing the range 1890 range, we will get the main confirmation for the downtrend. This analysis will be nulled in case the price exceeds the range of USD 1931.
XAUUSD(Gold) ShortsThis week Gold started give us a good opportiunity with buys and sells, but this time we are going to take a good entry with shorts. Price have made a LH and HH where gives us now the first confirmation to going shorts from here, second confirmation is a price where came to retest a 61.8% level and tested very well. As a third confirmation we a have a kind of H&SH.
My entry is 1910
sl-1918-1925
Target 1850