Long Term Gold Forecast: Why I will continue to buy
Before starting; I am a mid-long term trader on commodities. A good trend-trade worths more than 1.000 intraday trade. And let’s continue:
Gold is one of the best performing asset classes of 2017, but it has faced headwinds over the past few weeks based on market expectations that the Fed will raise rates in December. This expectation has caused a set of market movements, including a stronger dollar and weaker gold prices.
But, my idea has not been changed. I am still bullish. And I will use all pullbacks as buying opportunities.
Whatever the FED’s decision in December, I bet on GOLD prices will move up. Why?
A Rate hike of FED in December has already been priced by the markets 80%. (
Once the market wakes up and goes out to playground , probably in late November or early December, the current trends ( shorT-term bearish ) will suddenly reverse. You’ll see the dollar down and gold prices up.
There are certain reasons supporting my idea:
1. The physical fundamentals are stronger than ever for gold. Russia and China continue to be huge buyers. China bans the export of its 450 tons per year of physical production.
2. Central Banks is collecting physical GOLD.
3. I still do not see strong enough fundamentals supporting higher DXY.
Forex market is something but the physical market is completely different then forex.
The problem, of course, is unlimited selling in “paper” gold markets such as the Comex gold futures and similar instruments.
Main trend does not start/end overnight.
Technically speaking:
XAUUSD has still Bullish trend which is started in December 2016 from 1126 USD level.
There will be retracements, consolidations of course. However, we can not talk about a trend reversal as long as the price holds above 1.210 USD.
Even if the DXY moves higher and 97 levels ( I do not give a chance more than 30% to this scenario ), it may cause a drop towards 1.240 - 1.220 USD on XAUUSD. Which can be used as a perfect buying opportunity.
Short Term:
1279 USD is an important resistance, a daily closing above this level will carry the price 1.285 and 1.296.
My midterm targets are: 1.330 1.354 1.386 and 1.420 and ultimate target: 1.512
Monthly Chart: A picture is worth a thousand words.” This chart is a good example and explains why I continue to buy.
Good Luck
Before starting; I am a mid-long term trader on commodities. A good trend-trade worths more than 1.000 intraday trade. And let’s continue:
Gold is one of the best performing asset classes of 2017, but it has faced headwinds over the past few weeks based on market expectations that the Fed will raise rates in December. This expectation has caused a set of market movements, including a stronger dollar and weaker gold prices.
But, my idea has not been changed. I am still bullish. And I will use all pullbacks as buying opportunities.
Whatever the FED’s decision in December, I bet on GOLD prices will move up. Why?
A Rate hike of FED in December has already been priced by the markets 80%. (
Once the market wakes up and goes out to playground , probably in late November or early December, the current trends ( shorT-term bearish ) will suddenly reverse. You’ll see the dollar down and gold prices up.
There are certain reasons supporting my idea:
1. The physical fundamentals are stronger than ever for gold. Russia and China continue to be huge buyers. China bans the export of its 450 tons per year of physical production.
2. Central Banks is collecting physical GOLD.
3. I still do not see strong enough fundamentals supporting higher DXY.
Forex market is something but the physical market is completely different then forex.
The problem, of course, is unlimited selling in “paper” gold markets such as the Comex gold futures and similar instruments.
Main trend does not start/end overnight.
Technically speaking:
XAUUSD has still Bullish trend which is started in December 2016 from 1126 USD level.
There will be retracements, consolidations of course. However, we can not talk about a trend reversal as long as the price holds above 1.210 USD.
Even if the DXY moves higher and 97 levels ( I do not give a chance more than 30% to this scenario ), it may cause a drop towards 1.240 - 1.220 USD on XAUUSD. Which can be used as a perfect buying opportunity.
Short Term:
1279 USD is an important resistance, a daily closing above this level will carry the price 1.285 and 1.296.
My midterm targets are: 1.330 1.354 1.386 and 1.420 and ultimate target: 1.512
Monthly Chart: A picture is worth a thousand words.” This chart is a good example and explains why I continue to buy.
Good Luck
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