Pre-Fed Fake-Out for Liquidity; 1700+ near/in March Remains
As I noted several times over the past several days, weeks and months, 1700+ is in the cards either by March or sometime in early March. While yesterday (January 28th) may have scared many people off as Gold dropped about 1% and Silver dropped to roughly 17.45 (for seemingly no reason), the reality is, this was nothing more than speculators stopping out leveraged funds on retail and day-traders.
What we saw yesterday was a pure liquidity trap and Gold (and Silver) will likely reverse to the upside beginning after the Fed meeting; the reversal may-be immediate, or it may take 1 or 2 trading sessions. Regardless, 1700+ for Gold in March as well as 21+ for Silver on the same time-frame remains in-tact. As of time of writing, the reversal seemingly has begun.
Once we breach 1700, the short back down to roughly 1600-1630 will likely be present unless something extraordinary occurs (like some epic escalation in the coronavirus). After this short we can expect mid-cycle meandering once again, before a likely rise to 2000 sometime in the summer months and towards the end of 2020.
- zSplit
What we saw yesterday was a pure liquidity trap and Gold (and Silver) will likely reverse to the upside beginning after the Fed meeting; the reversal may-be immediate, or it may take 1 or 2 trading sessions. Regardless, 1700+ for Gold in March as well as 21+ for Silver on the same time-frame remains in-tact. As of time of writing, the reversal seemingly has begun.
Once we breach 1700, the short back down to roughly 1600-1630 will likely be present unless something extraordinary occurs (like some epic escalation in the coronavirus). After this short we can expect mid-cycle meandering once again, before a likely rise to 2000 sometime in the summer months and towards the end of 2020.
- zSplit
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