Gold can be seen trading within a channel since 1980, 45 years!
Whilst Gold has currently pushed and broken through this upper channel, I believe it is due to come back home, given its been in that relationship for 45 years. At least to try and work things out before going separate ways.
This technical analysis aligns with my other ideas on Bitcoin, Ethereum and the SP500.
Take a look below at those ideas, and more in depth, more technically backed analysis.
There is going to be and outflow of cash from stocks due to fear of and a recession, which is likely "caused by" Trumps harsh tariffs. In reality, this recession is a result of Covid, the recession that should have happened when the world shut down. But as we know, the markets doubled in price during this time, purely because of massive, never seen before levels of Quantitative Easing from the Central Banks across the globe. Inevitably, increasing the money supply at such a rate will cause massive inflation as a result of the currencies becoming diluted and therefore less valuable. Trumps tariffs are mealy just the straw that broke the camels back. The needle that bursts the bubble. Someone to blame.
While normally during times of fear people will tend to invest in Gold, which is why we have seen price break above this long term channel, and whilst Gold can still move up because it isn't over-bought per se. It is very likely to return to the channel, which falls in-line with the outlook for cryptocurrencies as they (Bitcoin especially) become fully adopted, taking up market share from Gold as a safe haven.
I expect to see Gold return to test the upper trend line of the channel starting from January 2025, at which point Gold will either fall back within that channel and continue falling, or Gold may bounce off the trend line and move upwards towards the highlighted 4270 -1.414 Fib as the next all time high.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.