Just today Gold has hit it’s new record high of All Times – 2365.34 $ per Ounce.
In the past year it has surged roughly 16%, and just in the past month 5.6%
And what are the reasons for that unseen rise :
- Geo political situation
- Inflation world wide
- Election uncertainty in the USA
Investors generally consider gold as a safe haven in times of economic uncertainty. But the precious metal offers no investment yield, making it less attractive when interest rates rise and higher yields can be found on bonds and other assets.
On top of it, sitting on the Gold costs money ( you have to pay for the safe keeping to the banks )
However, investors have increasingly anticipated interest-rate cuts by global central banks for the past year as economic growth has cooled.
So Buy more Gold….
Almost 70% of U.S. investors now expect the Federal Reserve to begin cutting interest rates in June, up from 58% just a week ago, according to the CME Groups’ FedWatch Tool that forecasts rate movements based on fed funds futures trading data.
Buy Gold….
In a research note, CitiBank said that uncertainty could continue providing support for gold prices. Moreover, analysts at Berenberg said a potential victory by Donald Trump in the U.S. presidential election would boost gold’s prospects.
So add some more Gold….
And what us Traders should do now ??? Buy Gold ???
Well, we have to turn to our technical analysis , charts , logic and some simple minded tricks.
Chart Monthly
As you can see from this Monthly chart, it can reach all the way to around 2600 $ per Ounce.
And technically speaking, it should.
But is it really going to happen ? Probably….but not this month.
So what should we do ?
We can use all that was said above and if in great, unstoppable urge to trade Gold right now, we have to use the smaller time frames, like 4h and 1h charts to determine the best entry points.
But we should not in the wildest dreams try to Sell it hoping for the Top….there is no top within a light year…
Even if what we are seeing right now proves to be the top later on, there is not even closely precise indicator to tells us that!
By using the very reliable and ancient way of reading charts – Rule of the Thumb ( do not laugh- it proved itself over and over again in situations similar to this one ) , we could be in the Up Trend for at least 6 months more…
Just look at the chart – from 2011 till 2013 – that is how we gonna know it is the end.
I am going to repeat myself : Do Not Try to Sell it , expecting to catch the Top.
Once the top will be in place and we’ll happily start selling it. But not yet…
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