Gold on interesting Technical fractal

31 oct

Technical and Fundamental analysis: My mid-week Target been met earlier than I expected as the DX, (Stocks remained High) and Bond Yields dipped. The Volatility is still High however but Gold is giving me decent accuracy patterns but with mixed Technical signals and may look to set a new Support zone first (my estimate #2,772.80) before hitting #2,800.80 benchmark. The Long-term trend remains Bullish with Daily turned green on all of its MA periods, still on the middle stages of the new Bull run as it is just below the 0.618 Fibonacci level (hence the current pull-back). My Long-term Target remains #2,852.80 and #2,900.80 benchmark in continuation. I will treat every Bearish spike as an Buying opportunity. Notice how, as explained on previous posts, the DX broke its Daily chart's Support which was much needed for Gold in order to break first Lower then Higher. The decline on Bond Yields also helped. I believe that Gold's set to push Higher, potentially testing Higher High's Upper zone as interest Rates head Lower, central banks extend purchases, and uncertainty surrounding geopolitics and Bond Yields pullback. As these interest Rates came down, Gold has rallied in #2019, rising to the Highest level in six years, as Investors contemplate slowing economic growth, prospects for easier monetary policy in the U.S. and China and festering trade frictions (similar to current upswing). The upswing has been given added momentum as central banks, including authorities in Russia and China step up purchases. A revival in Stocks lead to spillover demand from Investors for the older haven, Gold. Interest rates are going so low, particularly now in Europe.


My position: I have closed my yesterday's session Buying order #2,772.80 and closed on #2,786.80 and re-Sold on #2,785.80 towards #2,774.80 which brought excellent #25-point Profit within the session. I will continue Buying #2,772.80 Low's for now and as my Profit is excellent, I will not assume more Selling orders / only if #2,770.80 break-out is delivered which is major re-Sell signal.