GOLD: Thermometer of World Economic Sentiment
Updated
Hi Guys,
the above structure is based on the assumption that gold, among other factors, is driven by negative economic outlooks and is considered a safe haven asset.
For me the simpliest way to put it in order to undestsand price action in the last 10 years is the following: Financial Crisis have driven gold price up and the System have responded by implementing policies aimed to stabilize.
IMHO, since the Financial Crisis, gold represets the thermometer for level of stabilization of the World Economic Sentiment. Gold was at 1000 before the Financial Crisis right? It has doubled it's value due to fear, topped, pulled back, tested 1046 and it's ranging since, probably waiting for the next Financial Crisis to happen. But until that moment, I am not expecting major decisives moves.
Here a link to the Cup & Handle formation which has been unfolding since 2018.
Thank you for your support and for sharing your ideas.
Don't forget to put a like if you appreciate the post and to follow me if you want to receive notifications on new and updated ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
the above structure is based on the assumption that gold, among other factors, is driven by negative economic outlooks and is considered a safe haven asset.
For me the simpliest way to put it in order to undestsand price action in the last 10 years is the following: Financial Crisis have driven gold price up and the System have responded by implementing policies aimed to stabilize.
IMHO, since the Financial Crisis, gold represets the thermometer for level of stabilization of the World Economic Sentiment. Gold was at 1000 before the Financial Crisis right? It has doubled it's value due to fear, topped, pulled back, tested 1046 and it's ranging since, probably waiting for the next Financial Crisis to happen. But until that moment, I am not expecting major decisives moves.
Here a link to the Cup & Handle formation which has been unfolding since 2018.
Thank you for your support and for sharing your ideas.
Don't forget to put a like if you appreciate the post and to follow me if you want to receive notifications on new and updated ideas.
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
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This article is interesting for this narrative:reuters.com/article/us-usa-fed-global/would-a-political-fed-rescue-the-world-idUSKCN1RQ0AB
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