Gold continues to push higher amid the concerns of the delta variant and investors try to turn to the safe haven asset. China and Australia are struggling with virus outbreaks and shutdowns as economists fear another wave of potential lockdowns around the world.
I have been bullish gold for months now although the performance hasn't been great overall. Shutdowns are hard on a country's economy which is what will be the bullish catalyst in the short term. However, I think gold will be worth much more in the longer term as inflation keeps rising and interest rates remain low. Although lockdowns will help gold rise, I don't think that will happen again in the US as over 50% of citizens are vaccinated. So, the long term behavior is more important to me right now. I think that gold could definitely climb back to $2,000 in a year. In the short term, here is what I see:
$1,789 is a clear resistance level on the 1D chart, so price will likely test that level and have the potential to retrace after four days of green. A retrace could send price down to support around $1,750, while a push above resistance could take price up to the falling trend around $1,802. Something to watch is that the 50-day has crossed back under the 200-day moving average which signals a death cross, a bearish technical signal. A triple top at $1,830 will possibly be the biggest resistance level to cross above for the metal.
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 […]