Gold: Just a snapshot
Updated
Hi Guys,
just a snapshot.
Interesting to see how differently Gold reacts to FED policies.
At the end of 2015 FED started hiking (Gold in 2016: kitco.com/commentaries/2017-01-06/The-Gold-Market-in-2016.html)
In 2019 FED made three cuts.
But in both occasions Gold always made a run. This is because Gold react on the impact that FED policies have on the economy and especially as an INSURANCE POLICY vs impact of rising tensions between US and China.
Whilst rates hike were seen as negative or dangerous for the economy in 2016, now rate cuts are seen as a positive boosting factors for the economy.
But if this is correct, why is Gold not dropping yet?
Maybe waiting for the US-China Phase One Deal to be signed in mid Jan'20?
For additional infos about Gold please refer to the related ideas linked at the end of this post.
If you have any questions or comment to add please do not hesitate to post it.
Thank you for your support and for sharing your 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.
IMHO: The point of trading is to make money. To make money you must have money. Depending on the money at your disposal, you can decide what to do and how to do it. By having stops you decide how much you are willing to lose. By having targets you decide how much you want to earn. Be disciplined with your protocol and with your strategies for trading. Sometime you win, sometime you lose. Don't be greedy. Be realistic. Be wary but not afraid. Be curious. Use your brain. As long as your working process make sense and your spirit is calm, everything will be fine. Be patient and be prepared for any circumtances.
just a snapshot.
Interesting to see how differently Gold reacts to FED policies.
At the end of 2015 FED started hiking (Gold in 2016: kitco.com/commentaries/2017-01-06/The-Gold-Market-in-2016.html)
In 2019 FED made three cuts.
But in both occasions Gold always made a run. This is because Gold react on the impact that FED policies have on the economy and especially as an INSURANCE POLICY vs impact of rising tensions between US and China.
Whilst rates hike were seen as negative or dangerous for the economy in 2016, now rate cuts are seen as a positive boosting factors for the economy.
But if this is correct, why is Gold not dropping yet?
Maybe waiting for the US-China Phase One Deal to be signed in mid Jan'20?
For additional infos about Gold please refer to the related ideas linked at the end of this post.
If you have any questions or comment to add please do not hesitate to post it.
Thank you for your support and for sharing your 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.
IMHO: The point of trading is to make money. To make money you must have money. Depending on the money at your disposal, you can decide what to do and how to do it. By having stops you decide how much you are willing to lose. By having targets you decide how much you want to earn. Be disciplined with your protocol and with your strategies for trading. Sometime you win, sometime you lose. Don't be greedy. Be realistic. Be wary but not afraid. Be curious. Use your brain. As long as your working process make sense and your spirit is calm, everything will be fine. Be patient and be prepared for any circumtances.
Note
Note
Note
For me the fact that USD/CNH dropped below 7 between Dec 12 and Dec 13 (when US and China announced the deal) its the confirmation that Phase One is verbally done...risk appetite is ON but safehaven like gold are also supported and looking still bullish after two runs in 2019. The reason? IMHO Gold need to see the deal in writing. As soon as Phase One is signed, Gold will resume the correction commenced in September.Note
divergence with RSI
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