In this post rather than trying to forecast the price of Gold, I wanted to share a weekly chart that goes back to 2106. The idea is to show how the market responds when volatility picks up and then when we believe we got it on a day to day basis, trends change unexpectedly and leave us hanging by a thread On a different note, support and resistance levels tend to repeat themselves, like psychological levels (e.g. 1200, 1300 etc). As you can see in the attached chart 1358 was a level that was probably chosen because it was there from last year not because it represented anything in particular. Another thing that is very cyclical is the fact that uptrends begin typically in what traders call the Christmas Rally which is the trend reversal when year end operations lead to balance out portfolios on big corporations. November and the first two weeks of December are usually bearish for Gold on this scenario. You may want to check the monthly chart from time to time to be able to look ahead without using it for your day to day operations.
I hope to get some cash then
ReplyDeleteNorth Korea threatens to "sink" Japan, reduce U.S. to "ashes and darkness" That was updated 40 minutes ago. That should create some effect on the market ?!! Wondering why it is not moving...
ReplyDeleteGold is being dragged down by market sentiment associated with interest rates which have led EUR/USD down as well as US Bonds, I think today´s data (CPI) may be a market mover since it has direct impact on the interest rate decision by the FED. NK will again become a market mover when they actually do something, which is likely but not sure. I will update the analysis for today in a few minutes.
ReplyDeletewaiting for update sir, thankyou
ReplyDelete