Gold in danger as stocks keep falling
Updated
Finally, our expectations were fulfilled, and gold dropped below $1,900 yesterday. We continue to be bullish on gold in the long term. However, in the short and medium term, we are still inclined toward the scenario with gold sliding lower, likely testing $1,875 (and potentially $1,850 if the weakness in the stock market does not stop). Therefore, just like in the past few months, we remain waiting for a better opportunity to add more gold to our portfolio.
Technical analysis
Daily = Bearish
Weekly = Bearish
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Technical analysis
Daily = Bearish
Weekly = Bearish
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Note
In tandem with our expectations, gold dropped below $1,875, and now, it trades near $1,872 per ounce. The stock market seems to be enjoying a pause in selling pressure, and as a result, we think gold might attempt to erase some losses and retrace to $1,890 (maybe even slightly higher).Note
Gold failed to retrace to $1,890 and fell from $1,880 to $1,850. What's interesting is how the initial attempt to erase losses coincided with initial relief in stocks, and then the fall in gold coincided with weakness in stocks. That perfectly shows how the two are intertwined.Note
Gold is finally reaching some attractive price levels. However, there might still be some room for the downside. Therefore, we are very careful.
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