If the current risk on environment subsides and we see continued deleveraging of equity markets we expect Gold to continue higher. Golds demand is increasing in a negative interest rate environment. Gold used to be a hedge against inflation, now it is a store of value in a negative interest rate environment.
We will trade the breakout of the Bullish pennant to the upside with a target at the 100% extension of the first impulse move at $1400. This target is at the 2013 highs. This is a longer term trade. Will trade out if price falls below $1210.00.
We will trade the breakout of the Bullish pennant to the upside with a target at the 100% extension of the first impulse move at $1400. This target is at the 2013 highs. This is a longer term trade. Will trade out if price falls below $1210.00.