Let's short the GOLD!!!
Fundamental Analysis:
On the 14th of May, as a result of falling US bond yields, the US dollar fell sharply. With previous data showing US retail sales plateauing mid-April as well as the concerns on the prospects of accelerated inflation waning, Gold has nevertheless continued its continual growth for six weeks. Indeed, the decline in the yield of the US Dollar and US treasures in addition to the stagnant retail sales growth in the US during April has effectively boosted gold prices, and the decline of US bond yields have resulted in gold becoming significantly more competitive compared to other interest-bearing assets. Coupled with the increase in price for various Gold ETFs with the longest period of growth since January, this has essentially provided extremely strong fundamentals for further increases in Gold prices.
Technical Analysis:
Having a proper outlook and attitude when investing is important for being an excellent trader; the bitterness, joy, achievement and sadness will inevitably test our patience in a perpetual cycle, so it is imperative that perseverance can result in the trading process yielding unlimited potential for the investor.
Today, the daily line level continues to rise, testing the 200-day moving average, resistance level, MACD that can be strengthened as well as RSI being overbought. The daily and weekly trends have begun to test uncharted waters, challenging the downward trend that was propagated from the all-time high resistance point of 2075. The day trend line remains volatile, non-unilaterally rising, with today’s morning Gold rushing to the highs near 1853, but when comparing with previous historical trends (such as on the same historical Monday during the 18th of May in 2020), Gold also opened sharply before waning prior to the commencement of the European market, which suggests that Gold has indeed reached an extremely strong resistance level.
Trading Positions:
For More Active Investors: Adopt Short Position at 1855 setting stop loss at 1870 and target price at 1845
Alternative (passive) strategy: Adopt a Short Position at 1860, taking profit at 1843, and defence at 1870
On the 14th of May, as a result of falling US bond yields, the US dollar fell sharply. With previous data showing US retail sales plateauing mid-April as well as the concerns on the prospects of accelerated inflation waning, Gold has nevertheless continued its continual growth for six weeks. Indeed, the decline in the yield of the US Dollar and US treasures in addition to the stagnant retail sales growth in the US during April has effectively boosted gold prices, and the decline of US bond yields have resulted in gold becoming significantly more competitive compared to other interest-bearing assets. Coupled with the increase in price for various Gold ETFs with the longest period of growth since January, this has essentially provided extremely strong fundamentals for further increases in Gold prices.
Technical Analysis:
Having a proper outlook and attitude when investing is important for being an excellent trader; the bitterness, joy, achievement and sadness will inevitably test our patience in a perpetual cycle, so it is imperative that perseverance can result in the trading process yielding unlimited potential for the investor.
Today, the daily line level continues to rise, testing the 200-day moving average, resistance level, MACD that can be strengthened as well as RSI being overbought. The daily and weekly trends have begun to test uncharted waters, challenging the downward trend that was propagated from the all-time high resistance point of 2075. The day trend line remains volatile, non-unilaterally rising, with today’s morning Gold rushing to the highs near 1853, but when comparing with previous historical trends (such as on the same historical Monday during the 18th of May in 2020), Gold also opened sharply before waning prior to the commencement of the European market, which suggests that Gold has indeed reached an extremely strong resistance level.
Trading Positions:
For More Active Investors: Adopt Short Position at 1855 setting stop loss at 1870 and target price at 1845
Alternative (passive) strategy: Adopt a Short Position at 1860, taking profit at 1843, and defence at 1870
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