GOLD-(XAU): Fundamentals and Technicals Support This Next RUN
Updated
Fundamental Analysis:
It was always made clear to me that Gold is the "Safe haven" where money is shifted to in times of uncertainty and fear. Gold is also commonly bought to be used as a hedge. Take the tariff war that is currently going on between World Leaders, the increased tariff rates seem to have no limit. In return, the inflation to the US Dollar will have many people with their sights on Gold. A few examples of recent gold bull trends during down markets would be in 2002-2007 when the dollar fell drastically (40% against the euro). Gold also ran 240% in 2008 when the bank treasuries credit giveaways were discovered where gold found itself surging to $1,895 in 2011.
Technical Analysis:
The Markets were hit hard last week and during this time we saw Gold make a strong move to the upside, breaking out of its 3 month falling wedge to finish the corrective Wave 2/5. As we begin our impulsive wave 3 up, my fib measurement on this completion is sitting around 1450, where I believe we will be rejected for a corrective wave. I would like keep a close eye on the volume to see if it will pick up, However I see clear skies concerning the Volume Profile (VPVR).
Note
By the looks of it, I believe we are finishing off sub-wave(4) of wave 3Trade closed: target reached
closing out my options here...this was a wild ride. Not looking to short, but will be looking to place buy orders lowerNote
It’s possible this was an extended third, so a retrace would be expected. Which would set us up for a pretty sweet 5th. All hail Peter Schiff
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