Long-term views on GOLD (XAU/USD)
Updated
Currently, a lot is going on fundamentally. The BRICS is coming together to create a currency backed by gold. The aim with this currency is to remove the dollar as the main trading currency in the BRICS counties. The BRICS countries control 31.5% of the worlds GDP and the countries combined have more than 40% of the worlds population. There are more countries that will join the BRICS. Meaning more than 50% of the worlds population will be using the BRICS currency backed by GOLD. In my personal view, the value of GOLD needs to dip lower than what it is right now. This will make it easier for the BRICS countries and other countries interested in joining to keep accumulating GOLD at a lower price. Yes, the U.S has the largest GOLD reserves. But with the BRICS countries coming together, they will be stronger than the western countries since the west depends on other nations to keep thriving. The rest of the world is tired of the western countries influence, them coming together is a strategy to overthrow the dollar/west.
Technically, GOLD has reached an all time high of $2075, this is a very important resistance level. Currently we're on our third touch on this chronic resistance key level. GOLD needs to retrace down to at least the last higher low at $1805 from current levels of $1930. If the market chooses to break the level at $1930, it will definitely fall to its next higher low at $1614.
Technically, GOLD has reached an all time high of $2075, this is a very important resistance level. Currently we're on our third touch on this chronic resistance key level. GOLD needs to retrace down to at least the last higher low at $1805 from current levels of $1930. If the market chooses to break the level at $1930, it will definitely fall to its next higher low at $1614.
Note
Gold is already dropping really hard. I do not really have a target on this setup, but i knew it had to pull back and i don't think it's done. China is busy buying more Gold. China has had 1948,31 tonnes of Gold for many years, but recently they've accumulated more and they are currently sitting on 2113,46 tonnes of Gold. This means something fundamentally. If Gold breaks the $1805,00 level, it's going to it's next target of $1614,00. We'll just keep watching. You can check the economic fundamentals of China on the link below.tradingeconomics.com/china/gold-reserves
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