Gold Becomes the Second Largest Central Bank Reserve AssetGold's importance as a reserve asset for central banks is on the rise
According to Bank of America, gold has now overtaken the euro to become the second largest reserve asset, To be more precise, B of A should have specified that it is the eastern hemisphere Central Banks that are diversifying out of the U.S. dollar and the euro and buying gold and yuan. Currently, gold accounts for 16% of global bank reserves, while the dollar has dropped to about 58%, down from over 70% in 2002.
Poland emerged as the largest buyer of gold in the second quarter of this year (though the specific amount purchased by China's PBoC remains undisclosed). Additionally, Poland is requiring that the gold it acquires be delivered directly to its Central Bank, rather than being stored by London banks. Turkey is another significant gold purchaser, and several African nations have also announced plans to increase Central Bank gold reserves.
While it may not happen immediately, there’s potential for gold to surpass the dollar as the top reserve asset, especially if the BRIC nations and other Eastern hemisphere countries go forward with their rumored plans for a gold-backed trade currency. A BRICS Summit will be held in Kazan, Russia, from October 22nd to 24th, where discussions on a new trading currency may take place, though this has not been officially confirmed.
On September 5th, Russia announced plans to ramp up its daily gold purchases from $13.5 million to $93 million (1.2 billion rubles to 8.2 billion rubles) for the next month, using surplus revenue from oil and gas. This information was reported by the Russian news agency, Interfax. This move seems to align with the potential development of a BRICS gold-backed trade settlement currency, or even a broader gold-backed currency system.
I raise this point because the U.S. Federal Reserve is in a difficult position. It’s facing immense pressure from the market and Wall Street to reduce interest rates, but doing so could trigger a sharp decline in the value of the dollar.
The chart referenced above shows a 5-year daily performance of the US dollar index, with the dollar currently testing the 100 level—a key technical support since early 2023. If the Federal Reserve begins cutting interest rates, it's highly likely the dollar will fall to 90, a level last seen in mid-2021. This decline would likely push gold prices toward $3,000 and silver toward $50.
A weakening dollar presents several challenges. First, it could accelerate the reduction in the dollar's role as a reserve asset for global central banks. Even more concerning for the US, a depreciating dollar coupled with lower interest rates would make it harder to attract foreign investment to finance additional Treasury debt, a challenge that is already becoming evident.
Additionally, the Fed is aware that inflation is running higher than what is reported by the CPI. Reducing rates will further drive real interest rates deeper into negative territory. While the official CPI suggests real rates are positive, using more comprehensive measures like the Shadow Stats Alternative CPI, real rates are currently at -3% using the 1990 CPI method and -6% based on the 1980 version. Negative real interest rates fuel price inflation, contributing to its persistence. Cutting rates further would likely intensify this inflationary pressure.
This is one reason gold has been reaching new all time highs almost daily since the Fed cut rates earlier this month. Silver, similarly, is on the verge of breaking into the high $33 range.
Precious metals markets are anticipating more than just optimistic Fed rhetoric about a strong economy and lower inflation; they are also predicting a potential return to money printing policies
Goldtradingsetup
GOLD IS GOING TO BUY MOREHello Trader , What do you think about Gold ? Here on Gold price has made double bottom and was able to break above area which means is going to buy more so trader should go for LONG with expected profit target of 2758.136 .Remember to like and share your thought on comment! Use money Management
Gold: The End of the Bull Run or Just a Pause?After reaching an all-time high of 2685, the price has experienced a decline.
Currently, the price is moving within an ascending parallel channel.
Key Levels to Watch:
$2680 - This level is currently serving as an immediate resistance. A new rally is expected following a successful breach of this threshold.
$2530 - Previously a resistance level, this now functions as support. A drop below this point could lead to a more substantial decline.
Within this 150-point range, the price seems to be showing significant volatility.
Gold: May fall to 2625.00 - 2632.00 (READ DESCRIPTION)Gold: May fall to 2625.00 - 2632.00
Pivot Point: 2658.00
This level serves as a key resistance. As long as Gold remains below this point, the downside is expected to dominate.
Primary Strategy (Our Preference):
Entry Point:
Take short positions below 2658.00 with the following downside targets:
Target 1: 2632.00
The first support level where the price might find temporary relief.
Target 2: 2625.00
A continuation of bearish momentum could push the price towards this lower support level.
Alternative Scenario:
Entry Point:
If Gold breaks above 2658.00, expect the following upside targets:
Target 1: 2664.00
The price may rally toward this level if bullish pressure picks up.
Target 2: 2670.00
A further break above 2664.00 could lead to an extension toward this higher level.
Technical Outlook:
Resistance:
The resistance at 2658.00 is a key level. As long as it holds, there is a high probability that Gold will continue to move lower.
RSI Indicator:
The RSI is below 50%, indicating bearish momentum. As long as the RSI stays below this neutral zone, the downside risk is elevated.
Market Sentiment:
The overall sentiment suggests a bearish bias. As long as 2658.00 remains intact as resistance, look for downward pressure towards 2632.00 and possibly 2625.00.
XAU/USD 28 August 2024 Intraday AnalysisH4 Analysis:
Intraday expectation, analysis and bias remains the same as analysis dated 23 August 2024.
-> Swing: Bullish.
-> Internal: Bullish.
Price has printed a bullish iBOS.
After an iBOS (Internal Break of Structure) we expect a bearish pullback.
Price has printed bearish CHoCH which indicates, but not confirms bearish pullback phase initiation
Intraday expectation: Whilst price did continue bearish as part of bearish pullback phase, I am concerned that price has not, as yet, pulled back deep enough into either H4 demand zone or discount of 50% EQ, therefore, it is my view that price will seek further liquidity before a sustained bullish move to target weak internal high.
H4 Chart:
M15 Analysis:
Intraday expectation, analysis and bias remains the same as analysis dated 27 August 2024.
-> Swing: Bullish.
-> Internal: Bearish.
As mentioned in previous analysis whereby we needed to be mindful that H4, following bullish iBOS, has yet to initiate bearish pullback, therefore, it would not be unexpected if strong internal low was to be targeted. This is exactly what price printed, printing a bearish iBOS.
Price has printed bullish CHoCH indicating bullish pullback phase initiation.
Intraday expectation: Price is in premium of internal 50% EQ with strong high remaining protected. Price to target weak internal low.
M15 Chart:
DAILY CHART UPDATEHey Everyone,
Please see update on our daily chart structure that we have been tracking and trading successfully for a while now.
Last week we advised that a new Goldturn turn created a current ema5 cross and lock above 2405 opening 2464 again. Also keeping in mind the final gap we had open with candle body close above 2464 to 2521, which we shared, as a long range target for several weeks now.
- 2464 was hit perfectly last week and then currently we are seeing the breakout into the all time high and heading towards our final target at 2521. We are keeping this protected should we see any sharp corrections.
We will use our smaller timeframe analysis and trading plans to navigate the range in true level to level fashion.
Our long term bias is Bullish and therefore we will continue to use our smaller timeframes to buy dips using our levels and setups.
Buying dips allows us to safely manage any swings rather then chasing the bull from the top.
Thank you all for your likes, comments and follows, we really appreciate it!
Mr Gold
GoldViewFX
GOLD ROUTE MAP UPDATEHey Everyone,
Another great day on the charts today with our plans to buy dips playing out perfectly.
After completing our targets yesterday, we stated that no cross and lock above 2475 confirmed the rejection, which followed with the drop into the lower Goldturns for support bounces. We also stated that we are now back in the range and therefore levels are active again to track the movement up.
We got the drop into 2434 weighted Goldturn, which provided the support for the bounce now into 2459 weighted level. We will now need to see ema5 cross and lock above 2459 to open 2475 once again. Failure to cross and lock above 2459 will follow with a rejection to find support at the lower Goldturns track the movement level to level again.
We will keep the above in mind when taking buys from dips. Our updated levels and weighted levels will allow us to track the movement down and then catch bounces up.
We will continue to buy dips using our support levels taking 30 to 40 pips. As stated before each of our level structures give 20 to 40 pip bounces, which is enough for a nice entry and exit. If you back test the levels we shared every week for the past 24 months, you can see how effectively they were used to trade with or against short/mid term swings and trends.
BULLISH TARGET
2434 - DONE
EMA5 CROSS AND LOCK ABOVE 2434 WILL OPEN THE FOLLOWING BULLISH TARGET
2446 - DONE
2459 - DONE
EMA5 CROSS AND LOCK ABOVE 2459 WILL OPEN THE FOLLOWING BULLISH TARGET
2475 - DONE
BEARISH TARGETS
2421
EMA5 CROSS AND LOCK BELOW 2421 WILL OPEN THE FOLLOWING BEARISH TARGET
2408
2396
EMA5 CROSS AND LOCK BELOW 2396 WILL OPEN THE SWING RANGE
SWING RANGE
2380 - 2360
As always, we will keep you all updated with regular updates throughout the week and how we manage the active ideas and setups. Thank you all for your likes, comments and follows, we really appreciate it!
Mr Gold
GoldViewFX
GOLD 1H CHART ROUTE MAP UPDATEHey Everyone,
Great start to the week with our 1H chart playing out perfectly, as analysed.
We started the week with our 2434 Bullish target hit, which followed with ema5 cross and lock above 2434 opening 2446 and 2459.
Both these targets were hit completing this range. We are now looking for ema5 to lock above 2459 to open 2475. Failure to lock above this level will follow with a rejection to find support on the lower Goldturns.
We will keep the above in mind when taking buys from dips. Our updated levels and weighted levels will allow us to track the movement down and then catch bounces up.
We will continue to buy dips using our support levels taking 30 to 40 pips. As stated before each of our level structures give 20 to 40 pip bounces, which is enough for a nice entry and exit. If you back test the levels we shared every week for the past 24 months, you can see how effectively they were used to trade with or against short/mid term swings and trends.
BULLISH TARGET
2434 - DONE
EMA5 CROSS AND LOCK ABOVE 2434 WILL OPEN THE FOLLOWING BULLISH TARGET
2446 - DONE
2459 - DONE
EMA5 CROSS AND LOCK ABOVE 2459 WILL OPEN THE FOLLOWING BULLISH TARGET
2475
BEARISH TARGETS
2421
EMA5 CROSS AND LOCK BELOW 2421 WILL OPEN THE FOLLOWING BEARISH TARGET
2408
2396
EMA5 CROSS AND LOCK BELOW 2396 WILL OPEN THE SWING RANGE
SWING RANGE
2380 - 2360
As always, we will keep you all updated with regular updates throughout the week and how we manage the active ideas and setups. Thank you all for your likes, comments and follows, we really appreciate it!
Mr Gold
GoldViewFX
XAU/USD 08 August 2024 Intraday AnalysisH4 Analysis:
Bias/Analysis remains the same as analysis dated 04 August 2024.
-> Swing: Bullish.
-> Internal: Bullish.
Following price printing bullish BOS price pulled back to discount of 50% EQ before targeting weak internal high.
However, bullish momentum and pro swing/internal structure was unable to break and close above weak internal high, which, much like the daily TF, could be an early indication that bearish pullback phase is incomplete and price will seek further liquidity before targeting weak internal high.
Intraday expectation: Technically, price should target weak internal high, however, price has made one failed attempt, therefore, price could continue bullish, react at H4 supply level, print bearish price action, react at H4 demand level before targeting weak internal high.
H4 Chart:
M15 Analysis:
Analysis/Bias remains the same as yesterday's analysis dated 06 August 2024.
-> Swing: Bullish.
-> Internal: Bearish.
Yesterday's intraday expectation was met, assisted by dovish US economic news.
Price has printed a further bearish iBOS followed by a bullish CHoCH indicating bullish pullback phase initiation.
Indication of pullback initiation started by reaction at H4 demand level.
Price is currently hovering around 50% EQ printing low volume rangebound price action.
Intraday expectation: Price to react at premium of 50% internal EQ or M15 supply zone before targeting weak internal low.
Alternative scenario: Whilst intraday expectation is technically correct, we need to bear in mind that internal H4 structure is bullish with bearish pullback phase currently underway and could potentially be complete after reacting at H4 demand level.
M15 Chart:
GOLD ROUTE MAP UPDATEHey Everyone,
PIPTASTIC finish to the week with our analysis playing out to perfection!!!!
EMA5 lock above 2400 opened 2423 and 2438, which was hit perfectly followed with ema5 lock above 2438 opening 2459 and 2475, which was also completed today to perfection and now followed with the perfect rejection!!!
BULLISH TARGETS
2400 - DONE
EMA5 CROSS AND LOCK ABOVE 2400 WILL OPEN THE FOLLOWING BULLISH TARGET
2423 - DONE
2438 - DONE
EMA5 CROSS AND LOCK ABOVE 2438 WILL OPEN THE FOLLOWING BULLISH TARGET
2459 - DONE
2475 - DONE
BEARISH TARGETS
2376 - DONE
We will now come back Sunday with our Multi time-frame analysis, Gold route map and trading plans for the week ahead.
Have a smashing weekend!! And once again, thank you all for your likes, comments and follows, we really appreciate it!
Mr Gold
GoldViewFX
GOLD 4H CHART ROUTE MAP UPDATEHey Everyone,
Please see update on our 4H chart idea, which has been playing out perfectly inline with our trading plans,
As shared at the beginning of the week; We had 2406, as an open gap above and 2383 open gap below.
- Both of these gaps were hit!!! The retracement zone provided the bounce for the push up hitting 2406. This followed with a ema5 cross and lock opening 2429, which was also hit perfectly. We then had 2429 cross and lock opening 2461, which was hit today completing this chart idea - BOOOOM!!!!
We are now seeing the rejection at 2461 and price is now heading towards 2429 for support. Support here and we are likely to see another 2461 re-test or a break and lock below 2429 will open 2406 for a test.
We will keep the above in mind when taking buys from dips. Our updated levels and weighted levels will allow us to track the movement down and then catch bounces up.
We will continue to buy dips using our support levels taking 30 to 40 pips. As stated before each of our level structures give 20 to 40 pip bounces, which is enough for a nice entry and exit. If you back test the levels we shared every week in the past 24 months, you can see how effectively they were used to trade with or against short/mid term swings and trends.
BULLISH TARGETS
2406 - DONE
EMA5 CROSS AND LOCK ABOVE 2406 WILL OPEN THE FOLLOWING BULLISH TARGET
2429 - DONE
EMA5 CROSS AND LOCK ABOVE 2429 WILL OPEN THE FOLLOWING BULLISH TARGET
2461 - DONE
BEARISH TARGETS
2383 - DONE
2360
EMA5 CROSS AND LOCK BELOW 2360 WILL OPEN THE SWING RANGE
SWING RANGE
2328 - 2302
As always, we will keep you all updated with regular updates throughout the week and how we manage the active ideas and setups. Thank you all for your likes, comments and follows, we really appreciate it!
Mr Gold
GoldViewFX
GOLD ROUTE MAP UPDATEHey Everyone,
A great finish to the week with all our chart ideas playing out perfectly, as per our daily updates throughout the week.
Yesterday we advised that we got the test into 2380 weighted Goldturn support, after the rejection from the top. We also got the cross and lock below 2380 opening 2359, which was also hit perfectly. We then stated that we needed to see ema5 lock below 2359 to open the swing range or failure to lock below will see a reaction here.
- This played out perfectly once again with no lock below the 2359 weighted level, which followed with the rejection and reactional bounce into 2380 inline with our plans to buy dips!!
We will now need to track the movement level to level confirmed with cross and lock and knowing we have a gap above, helps with our plans to buy dips.
BULLISH TARGETS
2400 - DONE
2421 - DONE
BEARISH TARGETS
2380 - DONE
EMA5 CROSS AND LOCK BELOW 2380 WILL OPEN THE FOLLOWING BEARISH TARGET
2359 - DONE
We will now come back Sunday with our Multi time-frame analysis, Gold route map and trading plans for the week ahead.
Have a smashing weekend!! And once again, thank you all for your likes, comments and follows, we really appreciate it!
Mr Gold
XAUUSD: 19/7 Today's Strategy and AnalysisGold technical analysis
Daily resistance 2500, support below 2400
Four-hour resistance 2430, support below 2400
Gold operation suggestions: The overall price of gold is suppressed and adjusted at the 2483 mark, and the daily level has continuously broken down to around 2400. Today's upper resistance continues to focus on the starting point of yesterday's US market decline near 2429. The intraday rebound relies on this position to continue to short and look for a decline. The lower target continues to look at the 2400 first-line support.
SELL: 2430near
SELL: 2420near
Technical analysis only provides trading direction!
Gold Thoughts 22-JUL-2024Hello everyone! Please find my GOLD market analysis for today below. As a price action trader, I encourage you to compare my charts with yours and use my insights to enhance your skills. These videos are designed for educational purposes only, not as trading signals. My goal is to help you grow and become a proficient trader
Gold needs to be adjusted. Buy first, then sell.TVC:GOLD OANDA:XAUUSD COMEX_MINI:MGC1! COMEX:GC1!
Yesterday, the U.S. dollar index recorded its largest daily gain since June 20, as the July Philadelphia Fed manufacturing index was significantly higher than expected, showing signs of a strong U.S. economy. At the same time, market expectations for a ceasefire agreement in the Middle East have increased, which has slightly suppressed demand for gold. Affected by this, the price of gold fell below the rising trend line and is now near the previous support line of 2420.
In the big direction, the price of gold has turned from a bullish trend to a bearish trend. This state will not change before new news or data affects it, so trading is mainly based on selling high.
From a technical perspective, the unilateral decline is particularly strong, but it cannot be sustained. Now the price has just stopped falling at 2420. I think it needs to rebound upward and adjust before continuing to fall.
Summary: There is a need for rebound adjustment after a big drop, and the strategy is to rise first and then fall.
XAUUSD: 1 HR View Possible Retrace at $2430Dear Traders,
Gold has been ranging between $2460 to $2470 indicating a major correction in the market. Although we already have a buying entry on daily timeframe idea. Our that idea remain valid this is a secondary approach on what could happen in today or tomorrow.
Good Luck!
XAU/USD 19 July 2024 Intraday AnalysisH4 Analysis:
-> Swing: Bullish.
-> Internal: Bullish.
Price has printed a swing BOS, printing an all time high.
After BOS/iBOS price is expected to pullback.
Intraday expectation: Price to pull back into discount of 50% EQ or H4 demand zone before targeting weak internal high.
H4 Chart:
M15 Analysis:
-> Swing: Bullish.
-> Internal: Bearish.
Price has printed a bearish iBOS which confirms swing pullback phase initiation.
After iBOS we expect price to pull back, therefore, for an early indication that pullback has initiated we need to see price print a bullish CHoCH.
CHoCH positioning is denoted with a blue dotted line on the inside bar candle.
We are currently trading within an internal high and fractal low.
Intraday expectation: Price to print bullish CHoCH to indicate bullish pullback phase initiation. Price to trade up to premium of 50% EQ or react at M15 POI before targeting weak internal low.
Alternative scenario: Price to print a lower low which would reposition CHoCH positioning closer to more recent price action.
M15 Chart: