Gold continued its consolidation as it moved in a defined range of $41 creating an inside bar not exceeding previous week’s high and low. Price managed a gain of $15 closing above $1400 as the persistent breakout overpowered good data from America and a certain rate cut by U.S Fed allowed the rally to continue weakening the dollar substantially. Next week again Fed chair Powell speaks which remains the most important event.
On the chart –
Gold continued its time correction as it consolidated in a set range not exceeding previous week’s highs or lows. The trend remains extremely bullish as the Fed chair signaled a certain rate cut. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move till $1420. If this is crossed it can rally till $1434.
Short trade remains out of contention excepting scalp trades.
Bullish view – Bulls regained $1400 with ease as a certain rate cut pulled the dollar down and pushed up the gold price. Scenario keeps getting better and better for a good run for the gold as growth fears and U.S trade tensions keep the globe on tenterhook. For bulls to keep continuing higher they need to defend the supports as well as aim for new highs as technicals and fundamentals are very much favorable for them.
Bearish bets got diffused even more as a certain rate cut bolstered the bullish trend.
On larger terms, Gold continues to remain bullish and prices are expected to head higher. Possible trades are on both sides but mainly on upside, gold can be bought above $1412 for the targets of $1420 and $1434 with a stop loss placed below $1398. Dips towards support (and breakout region) can be used to create longs for the above mentioned targets. Shorts can be useful for scalp trades only.
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first target met at $1420
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Second target met at $1434
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Next bull target $1448
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Third bull target met at $1448
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The upmove continues, next long target $1464
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A rally above $1434 confirms the 6 yearr consolidation breakout which should take the price higher by 350 points plus
The fact Gold has remained above 1400 and consolidated around 1410-1414 supports my thoughts a month ago. The fact it hasn’t made new highs is not concerning at all imo despite what people try to tell you. Gold is heavily manipulated by US and Chinese markets are often sent higher in upcoming or present turmoil of some sort.
When the Fed drops rates this month and most certainly he will, Gold will make a run to over 1500.
With the market as is, continuing to set records, if Gold could ever tumble it would be now. Even further, trade worries have slightly tamed and geopolitical issues have tamed. If there was a reason to push Gold into the 1350s it would be now especially with the main indices as high as they are and have been.
Imo gold will run over 1500 beginning August 1 if the Fed cuts. If he cuts or talks about cutting in September or October again we could see Gold at 1700+.
Bitcoin will likely make a run as well with similar timing (August) to 16-18k.
vanimator
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@zSplit, 100% Agree to your views as i too have similar, Thank you and your welcome.