Don’t panic because of the adjustment, gold is bullish near 2405
Updated
https://www.tradingview.com/x/w6yR4JGU/
This time, unlike four years ago, the surge in gold in 2020 is due, on the one hand, to the sudden epidemic, which has led to market uncertainty about the future, and, on the other, the massive monetary easing by the Federal Reserve.
Today, the Federal Reserve has already tightened policy and has been clamoring to raise interest rates. Fed Governor Bowman has repeatedly reminded the market not to be too optimistic. A drop in inflation does not guarantee that interest rates will not be raised in the future.
Federal Reserve voting committee member Mester also said yesterday that she believed three interest rate cuts this year were too many. Based on the current economic development, too many interest rate cuts are not suitable.
The US economy is slowing down. This is already an event. Politicians will not come out and say that their economy is going to collapse. They are optimistic that there will be a soft landing and inflation will continue to be high and interest rates will be reduced to 2%.
The market situation does not mean that the higher the frequency, the better, nor does it mean that a small amount adds up to a large sum. It is about clarifying the main trend, then turning the short-term into a long-term, and continuing to make profits. It is unrealistic to try to counter the trend.
Because it does not mean that a rise will necessarily lead to a fall, and a big rise does not necessarily mean a big fall. This is not a positive or negative relationship. Just like many people’s understanding of the Fed’s interest rate hikes and cuts is very one-sided. The end of interest rate hikes does not mean that It is necessary to raise interest rates. It is absolutely possible to maintain high interest rates without increasing or decreasing them.
I have repeatedly emphasized that once you miss the gold rally, you may not be able to encounter such an opportunity even if you wait for ten years. But even if you participate, you do not have a deep understanding of the trend and cannot make profits, and you will always be pessimistic. I think it’s because the market is not good, I’m not lucky, and I’m not good enough.
In fact, none of the above has anything to do with it. Wealth is determined by the track, and investment is determined by trends. Just like if you invest in stocks in the United States in the past 20 years, the trend will take participants across classes.
Don’t be afraid of heights. There will be adjustments after rising. This is a normal market behavior. Yesterday, the price of gold adjusted downward from 2,450 US dollars. It was just a short break. It will not have an impact on the rise. Instead, it is an opportunity to get on the train.
After the gold price hit $2,450 yesterday, it continued to fall back. The current support is at $2,407, which will be adjusted. However, the structure is still mainly low and long. We are not considering shorting gold at the moment.
Therefore, we should pay attention to this kind of sharp rise in the market, especially after the data weakens, we should not go low again.
Today, gold is long near 2405, and the loss is at 2390, avoiding the previous top-bottom transition position of 2396. The span of the target area above is enlarged a bit, at 2430-2440, and the stop loss will be adjusted by moving up at that time.
This time, unlike four years ago, the surge in gold in 2020 is due, on the one hand, to the sudden epidemic, which has led to market uncertainty about the future, and, on the other, the massive monetary easing by the Federal Reserve.
Today, the Federal Reserve has already tightened policy and has been clamoring to raise interest rates. Fed Governor Bowman has repeatedly reminded the market not to be too optimistic. A drop in inflation does not guarantee that interest rates will not be raised in the future.
Federal Reserve voting committee member Mester also said yesterday that she believed three interest rate cuts this year were too many. Based on the current economic development, too many interest rate cuts are not suitable.
The US economy is slowing down. This is already an event. Politicians will not come out and say that their economy is going to collapse. They are optimistic that there will be a soft landing and inflation will continue to be high and interest rates will be reduced to 2%.
The market situation does not mean that the higher the frequency, the better, nor does it mean that a small amount adds up to a large sum. It is about clarifying the main trend, then turning the short-term into a long-term, and continuing to make profits. It is unrealistic to try to counter the trend.
Because it does not mean that a rise will necessarily lead to a fall, and a big rise does not necessarily mean a big fall. This is not a positive or negative relationship. Just like many people’s understanding of the Fed’s interest rate hikes and cuts is very one-sided. The end of interest rate hikes does not mean that It is necessary to raise interest rates. It is absolutely possible to maintain high interest rates without increasing or decreasing them.
I have repeatedly emphasized that once you miss the gold rally, you may not be able to encounter such an opportunity even if you wait for ten years. But even if you participate, you do not have a deep understanding of the trend and cannot make profits, and you will always be pessimistic. I think it’s because the market is not good, I’m not lucky, and I’m not good enough.
In fact, none of the above has anything to do with it. Wealth is determined by the track, and investment is determined by trends. Just like if you invest in stocks in the United States in the past 20 years, the trend will take participants across classes.
Don’t be afraid of heights. There will be adjustments after rising. This is a normal market behavior. Yesterday, the price of gold adjusted downward from 2,450 US dollars. It was just a short break. It will not have an impact on the rise. Instead, it is an opportunity to get on the train.
After the gold price hit $2,450 yesterday, it continued to fall back. The current support is at $2,407, which will be adjusted. However, the structure is still mainly low and long. We are not considering shorting gold at the moment.
Therefore, we should pay attention to this kind of sharp rise in the market, especially after the data weakens, we should not go low again.
Today, gold is long near 2405, and the loss is at 2390, avoiding the previous top-bottom transition position of 2396. The span of the target area above is enlarged a bit, at 2430-2440, and the stop loss will be adjusted by moving up at that time.
Trade active
Gold adjusts as expectedTrade active
Those who entered the market at 2408 have already received profits.Trade active
Gold adjustment is over and an upward trend has formed
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