Gold has been making steady gains for the past several weeks starting mid August after hitting March and April lows. The USD has been struggling ever since the symposium meet-up in Jackson Hole where the Fed indicated they might start to taper this year but not raise interest rates in 2021. The pair is now up against a triple top after recently forming the third top on the 1D chart.
This could be perceived as either bullish or bearish from a technical standpoint, but fundamentals point towards a bullish case for gold. The pair has been performing well for various reasons like the weakening dollar sentiment in the short term while COT reports show us that long position futures contracts have increased as well as the overall liquidity in the gold market since net positions are steadily rising. Last week, gold also broke above the 200 DMA and was able to remain above it all week. I think we could be looking at a good week for the gold longs as interest and bullishness continues to go up.
Gold on the 1D chart is up against major resistance at what is now a triple top, a level that the metal hasn't been able to break above since June. If price rejects this level and begins to turn downward, gold is still in a good spot. Heavy support also lies a little below at the 200 DMA which is in the $1800-1810s range. If price does end up breaking above the triple top this week, we could expect to see a higher run to possibly the $1850s range where there is the first sign of clear resistance on this timeframe.
9/24/2021 The People's Bank of China banned all crypto transactions on overseas Chinese services along with its domestic ban. Bitcoin is down over 8% today and Ethereum is down 11.48%. Our outlook I think we're seeing a lot of noise around China and their condemning of cryptocurrencies before they digitize their own. In the short […]
Let's look into the Bank of England's Monetary Policy Summary which took place on Thursday the 23rd of September, 2021. Quick Summary: BoE keeps interest rates unchanged at 0.10% BoE will maintain its asset purchasing target at £875B The vote to keep policy unchanged passed with a 7-2 vote The minutes of the MPC meeting […]
9/23/2021 The precious metal snapped three days of gains and tumbled back down to the support range from $1740s-1760s approximately. Gold is down -.56% on the day going into the opening of the NY session. Our outlook Gold will likely rise on the US indices falling, and is usually due to slowing economic growth. Because […]
9/21/2021 Bitcoin Update For the past month, Bitcoin went on a tear rising over 20% from the beginning of August. Recently, however, China and other risk-off factors have contributed to a 23% decline from the recent highs around $52,760. Now the most prominent crypto has touched these monthly lows which could be a potentially good […]