Gold bulls' revenge will be sweet (Update 1)
Hi guys,
Goldy is rangebound for over a week now and I am expecting a breakout this week. Today is the last day for Basel III, and I expect the metalbanks to start buying gold this week with ADP & NFP functioning as the fundamental catalyst.
Gold bulls have done a terrific job so far to de-accelerate the selling and dips are being bought pretty quickly. We have a beautiful golden cross formation on the daily timeframe, and a (very rare) bullish Harami candle formation on the weekly TF, which is a strong buy signal.
Still expecting a test of the 1750-1755 zone (maybe even 1740-1745), but for me it's pretty clear gold heading northbound after. Fundamentally we are still in the same situation and nothing has changed on the ground. USA is on an unsustainable path towards bankruptcy with the amount of debt that has been created.
There will be a tipping point in the near future that they need to increase interest rates to fight inflation (I believe much earlier than 2023), and once that happens the interest that the US government has to pay on their debt will be more than they can afford. The house of cards will collapse and no one that can do anything about it.
Until the FED actually starts tapering and/or increase rates, gold will remain bullish and I expect to hit my target zones before the Jackson Holy Symposium in August.
The summer holiday season is near and I will be less active in the coming time. After all, summer bankrolls are built in winter, and wintergains are spent in the summer :).
Love and hugs,
Cesaro
Goldy is rangebound for over a week now and I am expecting a breakout this week. Today is the last day for Basel III, and I expect the metalbanks to start buying gold this week with ADP & NFP functioning as the fundamental catalyst.
Gold bulls have done a terrific job so far to de-accelerate the selling and dips are being bought pretty quickly. We have a beautiful golden cross formation on the daily timeframe, and a (very rare) bullish Harami candle formation on the weekly TF, which is a strong buy signal.
Still expecting a test of the 1750-1755 zone (maybe even 1740-1745), but for me it's pretty clear gold heading northbound after. Fundamentally we are still in the same situation and nothing has changed on the ground. USA is on an unsustainable path towards bankruptcy with the amount of debt that has been created.
There will be a tipping point in the near future that they need to increase interest rates to fight inflation (I believe much earlier than 2023), and once that happens the interest that the US government has to pay on their debt will be more than they can afford. The house of cards will collapse and no one that can do anything about it.
Until the FED actually starts tapering and/or increase rates, gold will remain bullish and I expect to hit my target zones before the Jackson Holy Symposium in August.
The summer holiday season is near and I will be less active in the coming time. After all, summer bankrolls are built in winter, and wintergains are spent in the summer :).
Love and hugs,
Cesaro
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