XAUUSD - Gold continue to move in uptrendAnalysis description
Timeframe 1H
Gold continues to move within the upward channel. Formed the third liquidity zone, from where it headed up to test the resistance level of $1834. The movement takes place on the decreasing volumes.
From the liquidity zone came out in a large green candle, forming a bullish takeover.
The stochastic RSI is in an overbought zone.
Timeframe 4H
50MA under the 200MA, and 200 under the 100 moving average; stochastic
RSI is in the overbought zone.
Forecast
I consider a LONG after a correction from current levels to the yellow zone of liquidity, then a breakout of 1834.65, then 1837 and 1842.
Inflationhedge
Can traders trust inflation data forecasts this week?Can traders trust inflation data forecasts this week?
07 Feb – 12 Feb, 2022
This week’s trading takes place in the shadow of last week’s Non-farm Payrolls number, out-doing analysts’ expectations by a considerable margin. Non-farm Payrolls recorded 467K jobs added to the US economy in January vs an expected 150K gain. Investors will be cautious of this week’s predictions, especially as it applies to inflation data.
Thursday, February 10:
Brazil Inflation Rate YoY JAN
Mexico Inflation Rate YoY JAN
Russia Inflation Rate YoY JAN
Inflation data across three emerging economies should draw investor interest on Thursday. In order of appearance, Brazil, Mexico, and then Russia’s results will be rolled out through the morning.
Brazil and Russia’s readings are expected to keep rolling onto new multi-decade highs. In contrast, Mexico’s reading is expected to cement the idea that inflation has peaked in the country as it records its second straight decline in its reading.
Brazilian inflation is expected to rise from 10.06% to 10.40%
Mexican inflation is expected to fall from 7.36% to 7.00%
Russian inflation is expected to rise from 8.4% to 8.8%
Friday, February 11:
US Inflation Rate YoY JAN
The Federal Reserve’s prediction that inflation will return to 2.6% sometime this year is unlikely to be encouraged by January’s reading of US inflation YoY. The market is predicting an increase in the inflation rate from its current 7.0% to 7.3%.
January’s reading is due this Friday morning.
Something to consider in relation to the inflation rate is that its biggest contributor, energy, has recently hit 7-year highs, with WTI and Brent crude both trading above US $90 per barrel.
Why are Netflix shares down 30% in 2022?Netflix (NASDAQ: NFLX) shares have tumbled 30% YTD, similar to its tech brethren, who have by-in-large, been facing huge downward pressure. For interest sake, NFLX was down 37% from its all-time high in November 2021.
Two major events have eaten into the gains that NFLX made in 2021. The first is investor confidence waning in growth stocks in the face of looming interest rate rises. And the second has perhaps had a greater impact; a tepid earnings report.
Netflix shares experienced a significant sell-off two weeks ago, after releasing its Q4 2021 earnings report. The report noted that the pace at which Netflix is adding subscribers is slowing. Such a declaration typically spooks Netflix investors, who steadfastly hold the streaming platform still has plenty of room to grow and shrink its price-to-earnings ratio.
Before Netflix’s share price dipped by 30%, its PE ratio was ~60.0. As it stands, with Netflix trading at US $429.48 per share, its PE ratio is now ~38.0.
Netflix finally admits it is facing tougher competition
Typically shying away from doing so, Netflix has finally revealed that competition is hurting its subscriber growth. It is this admission that caught a lot of investors off guard.
In the past three years, Netflix has had to contend with a wave of competitors entering the streaming market, such as (in order of appearance) Apple TV+, Disney+, Peacock, HBO Max, and Paramount+.
The penultimate newcomer on the above list, the premium-placed HBO Max, has been the fastest-growing service of late, vastly outpacing Netflix and adding 73.8 million subscribers last year.
Similarly, Netflix is hurting from older streaming services increasing the appeal of their content libraries and raising investment in content creation. One such competitor, Amazon Prime, increased its spending on content by 41% to US $11 billion in 2020 from the previous year and have recently bid US $8.5 billion to acquire MGM studios and its content catalogue.
2022 looks to be a pivotal year for streaming
Will 2022 be the year that consumers start weaning off the numerous streaming services to which they are subscribed? As prices climb, this may be the likely outcome.
In this respect, Netflix may be on the back foot, having recently pushed its prices up to US $15.50 per month for its standard package. Netflix is now more expensive than the more ‘premium’ HBO Max at this price point.
One factor that could influence the price of Netflix shares over the year is whether their competition hikes their respective prices. For one, Disney+ might be expected to raise its prices before June, as its bargain pricing (introduced one year ago) becomes increasingly unsustainable. However, its attempt to hit ambitious growth targets may delay price hikes from the company.
If pricing over the different streaming services become more equitable, content becomes the deciding factor for consumers. Netflix, and Netflix’s share price, will be in a better position in this scenario as consumers by far prefer Netflix content over its competitors. As such, In 2021, even as competitors pumped funds into content creation, Netflix’s hosted 14 of the top 15 most popular TV shows and Movies.
Gold Prices Could DoubleGold has been trading in a flag pattern for a little over 1.5 years. This consolidation pattern tends to lead to a big break out, which could point prices to go higher but also lower. Fundamentally speaking, if stocks are under performing and real bonds rates are returning negative yields, gold would be an attractive hedge against inflation and beaten asset prices.
Gold (GLD) is set for a major breakout to the upside!In this article I will explain why we at Dow Experts Finance have recently increased our exposure in our corporate investment portfolio to Gold by buying into the SPDR Gold Shares (GLD) trust, what our economic projections are for 2022 and why we believe that investors need to be highly cautious in the coming months.
The last more than a decade has been defined by a generally loose monetary and fiscal policy with artificially low interest rates, Quantitative Easing (QE), falling bond yields and consistently rising stock prices. We discussed all of these components, their inter-correlation and dependence in our detailed macro analysis published back on June 29th, 2021, where we accurately predicted the strong appreciation of the USD in the 2nd half of 2021, despite the fact that the broad consensus in the market at the time was for a weaker US dollar throughout 2021.
You're welcome.
Now, it’s time for us to share with you our analysis and thoughts on where we see the global economy, interest rates, inflation, bonds yields and of course stock prices heading in 2022. We believe that having the right macro economic framework and understanding of how leading economic forces and indicators affect the demand for money as well as goods and services globally is essential for being successful as an investor in these highly complex times. Being able to recognize major trends, correlations and structural changes allows you to efficiently optimize and re-balance your investment portfolio in a way that will ultimately help you to stay one step ahead of the market.
Today's analysis will focus exclusively on Gold, as we will be releasing our full macro investing outlook for this year in the coming weeks and we don't want to overlap too many things between the two articles. At any rate, our full macro investing outlook paper will present you with a much deeper dive, showing you where we see the best trading and investing opportunities in 2022 and beyond.
The Technical Set-Up
Apart from the great cup and handle technical formation on the monthly chart, which is a strong BULLISH continuation pattern, GLD is also expected to receive a meaningful boost from a weakening US DOLLAR and the elevated levels of inflation that we expect to see in the US moving forward.
The Cup & Handle technical pattern currently in play has been forming since the lows at around $40/oz set all the way back in 2005. As you can see on the chart below the price action has been characterized by a sharp price rise in Stage 1; a corrective phase with the formation of a broad base, Stage 2; another strong rally (Stage 3) taking the price back to the highs reached in Stage 1; a minor profit taking correction (Stage 4). This is a textbook set up for a meaningful multi-year rally for Gold, especially considering the fact that it is on the monthly chart.
The new mandate of the Fed
The Federal Reserve has shifted its growth mandate to a price mandate at the end of 2021, which means that achieving price stability and lower inflation readings is now a more important goal than chasing growth and pushing equity markets higher with artificially low interest rates and generally loose monetary policy conditions.
So, what does that mean?
It means that in the event of a sharp correction in the US equity markets caused by the expected strong tightening in monetary policy conditions, the Fed will be less likely to jump in to the rescue of equities by lowering the benchmark interest rates and resuming its QE program (as it did back in March of 2020). Reason being, such actions would simply throw gasoline in the inflation fires in the economy.
The current environment
- We have highly inflated US equity markets sitting at all-time highs;
- A weakening US Dollar with a descending triangle formation on the monthly chart with 4 rate hikes already priced in for 2022, thus leaving it a very limited fundamentally supported upside from here. In case the Fed is unable to complete all 4 interest rate hikes in 2022 and/or interest rate expectations start shifting for whatever reason, the US dollar will experience a major sell-off.
- A high inflation up until now mainly driven by supply-chain bottlenecks, which is expected to stay relatively high in the foreseeable future.
- The weakening US Dollar will further increase the inflation in the US economy for the following reasons:
Import prices will rise causing a degree of imported inflation
The rise in aggregate demand from cheaper exports
The fall in the value of the dollar may reduce the incentives for firms to cut costs because they get an ‘easy’ improvement in competitiveness. Therefore, a fall in the dollar may harm long-term competitiveness.
- A hawkish Federal Reserve with a price mandate instead of a growth mandate
- Unfavorable demographic trend with the highest ever number of people expected to leave the workforce in 2022 (baby boomers retiring).
Conclusion
We believe that the Federal Reserve is already way behind the curve with its tapering and tightening efforts as it is still technically injecting liquidity into the market with over $60 billion worth of assets bought this month alone.
Moving forward, after concluding its tapering process in March, 2022 the Fed will make an attempt to catch up with the running inflation, but will still be somewhat limited in terms of the actual pace of policy tightening as they would not want to sent the economy into a deep and prolonged recession. Furthermore, with the excessive amounts of credit injected into the system over the last few years, the Fed is well aware that if asset prices collapse dramatically, that would mean that the collateral of these record levels of public and private debt will go down, reducing personal wealth and making it much more difficult for borrowers to service their loans. In addition to that, if inflation stays relatively elevated for prolonged periods of time that will also eat away from the purchasing power of consumers, thus making their wages and earnings less valuable.
So we might be heading towards an economic environment where, asset prices come down as a result of tightening of monetary policy conditions, rates go up but fail to completely subdue the raging inflation as they are simply starting from a very low level (0.25%) and will take the Fed a long time in order to get them back above 2% or higher. This would then lead to a further erosion in the purchasing power of the end consumer, thus lowering the Aggregate Demand in the US economy and lowering the Real GDP moving forward.
On the other hand, the current demographic mix and the millions of people expected to leave the workforce this year, together with the continuous technological innovation present in the economy are both going to exercise their respective deflationary pressures moving forward. We hope that these developments could also help the Fed in the fight against inflation putting somewhat of a natural lid to how high inflation could rise in the long run.
We believe that the economy would eventually self-correct and stabilize in the long run, but we will definitely have to go through a period of economic contraction in order for that to happen.
Gold is widely considered as a safe-haven asset, which tends to outperform in times of uncertainty, volatility and lower GDP growth, thus making it an attractive asset for 2022 and beyond!
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US Gov. Bonds 10 year yield on monthly log scale Looking at the Trend line, it looks like the current financial system might be close to its very end. Put into perspective of the massive Accumulation of the whole Crypto Market, it makes sense for every single investor to stray away from traditional finance. Hyperinflation comming?
XAUUSD SHORT TO 1736This here is my Gold long analysis long term back up to 1974 to cover all the imbalance created throughout 2021. This here is a sell to buy trade. I still expect one more wave down towards 1735-1710 in order to grab liquidity for the year. After that move is complete, Gold will be ready for its yearly Bull run. Possibly even possible to create a yearly high now that the long term correction is about to be finished.
If you look back on my profile and see my further analysis, this here is an ALTERNATIVE ANALYSIS. My main analysis is Gold shorts down towards 1570.
I will be catching this move on behalf of myself & my Account Management investors.
Market Myth - Gold and InflationMarket Myth - Gold and Inflation
Consumer price inflation is up but Gold is down. That’s not unusual.
Gold , they say, is the ultimate consumer price inflation hedge . The famous story goes that a Roman strutting his stuff down Via Sacra back in Emperor Nero’s day nearly two thousand years ago would have paid an ounce of gold for his top-of-the-market toga, sandals and belt. In 2021, with the euro price of Gold hovering just above €1,500, a chic Roman posing down Via del Corso would have paid that for his Salvatore Ferragamo designer suit, his Gucci shoes and accoutrements.
Gold bugs point to this as evidence that Gold is the ultimate currency because it has held its store of value for millennia. Whilst that may be true, shorter time frames reveal a rather messy picture.
The chart above shows the U.S. dollar price of Gold versus the annualized rate-of-change in the U.S. Consumer Price Index ( CPI ). If you believe in Gold as a consumer price inflation hedge then, as the CPI is accelerating, the Gold price should be advancing. The black shaded areas show that there have been five occasions since 1980 when the opposite was true, the last year being a good example. On the other side, the Gold-Inflation myth would allude to the price of Gold declining as CPI was decelerating. The white shaded areas show five occasions since 1970 when this was not the case, 2007 to 2010 being a prime example.
In fact, the correlation coefficient between the two series turns out to be MINUS 0.43, meaning that not only does no relationship appear to exist, if any does, it’s a negative one. I can hear my old econometric lecturer asking if we’re comparing apples and apples. Well, I suppose we could look at the correlation between the annualized rate-of-change between both series. That turns out to be 0.41. Positive, at least, but still no evidence of a relationship. Even being generous and comparing the Consumer Price Index itself ( which, of course, has risen inexorably ) with the price of Gold gives a correlation coefficient of 0.83. Much better but more akin to the Roman story than anything else. The evidence suggests that, whilst Gold might go up over the long-term as the CPI chronically advances, shorter time frames, which can last years, suggest no relationship at all.
“ Poppycock !” the gold bugs say, “ Gold goes up whether we have inflation or deflation. ” It’s true, consumer price deflation during an economic collapse such as in the 1930s may well see the free-market price of Gold advance as people seek it as a survival hedge. During the Great Depression, the fixed price went up from $20.67 to $35 per ounce. But this was a blatant devaluation of the U.S. dollar by the government, not because people were buying Gold; they weren’t allowed to, and, anyway, FDR had stolen their holdings.
In conclusion, therefore, the recent relationship between Gold and the CPI has not been unusual in an historic context. What happens next? Thankfully, Gold is a free market these days, so the Elliott waves should guide us. Stay tuned.
XAUUSD LONG TO 1974This here is my Gold long analysis long term back up to 1974 to cover all the imbalance created throughout 2021. This here is a sell to buy trade. I still expect one more wave down towards 1735-1710 in order to grab liquidity for the year. After that move is complete, Gold will be ready for its yearly Bull run. Possibly even possible to create a yearly high now that the long term correction is about to be finished.
If you look back on my profile and see my further analysis, this here is an ALTERNATIVE ANALYSIS. My main analysis is Gold shorts down towards 1570.
I will be catching this move on behalf of myself & my Account Management investors.
Bitcoin a Leading indicator of Inflation.... maybe ?We are now discovering the relationship between Bitcoin and inflation. This seems to be a leading indicator, possibily bitcoin is tell us the future of inflation. With Tappering in place and rate rises next year its likely this trend will continue!
GOLD Long Gold has recent broken out of its previous resistance zone around 1790, currently expecting a retest of that zone to find a long entry. Also, with stagnant interest rates and the US expecting inflation until mid 2023 we can expect the price of gold to increase as many will use it as a hedge against inflation.
XAUUSD LONG TO 1837I am currently looking to buy Gold again as a retracement. Last month we saw Gold drop roughly 1000 PIPS to the downside in a very sharp move showing that Gold is currently in a downtrend. Looking at market structure, we can see that Gold has been been creating a corrective pattern which also indicated a loss of momentum for sellers, hence why we've seen ZERO Gold moves this ENTIRE MONTH.
This here was officially Wave 1 of the new downtrend. The move back up to 1826-1837 will be the corrective wave (Wave 2). Depending on how market reacts around that zone, we can start looking at a deeper move down towards 1670-1640 as our next target.
I will be catching this move on behalf of myself & my Account Management investors. Drop a like if you agree with the analysis and want to see more!
SHORT ON GOLD - SUPPLY & DEMANDGOLD is currently at a key supply zone, marked out on the 30M timeframe. Previously, GOLD has rejected this zone with strong momentum, and we can already see strong selling pressure at this zone.
We've just seen a huge bearish engulfing candle formed the 30M timeframe, creating a new lower low. I am now looking for GOLD to come up to supply once more to complete the head & shoulder pattern making that lower high which so happens to line up with the 61.8 Fibonacci level.
I personally believe GOLD is heading higher into the 1800 (Golden zone) where we have another supply zone, however GOLD has started to reject the 30M supply zone instead but please do trade with caution!
Long-term- I believe GOLD is going to break out of this range and head up to the mid-1800 area in the next few weeks/months. This idea is fuelled by the high inflation rate around the world, specifically the US where they are at a 38 year high of 6.8%. GOLD is seen as a hedge against inflation and with concerns over the new Covid variant, investors may start moving their money into safer assets such as GOLD / US Dollar / Japanese Yen.
This is merely a possibility and a trading idea so please do trade with caution and ensure correct risk management is implemented.
Good luck and let me know your thoughts!
PLATINUM LONG TO $1400Similar to all the other commodities, it seems like Platinum could be getting ready for another bull run in 2022, after spending most of this year declining. Not much volume in the markets right now, but this could be used as a chance by buyers to accumulate momentum in order to push it up when volume re-enters in 2022. Could still see just a little push lower to take out September lows & grab liquidity, but overall, this would be the right price to invest into Platinum.
I will be catching this move on behalf of myself and my Account Management investors.
Bitcoin Still Looking HealthyFor the past week bitcoin has been trading between roughly $50K and $47K as I predicted on December 3rd as BTC broke it's trend line. Upon breaking the trend, volume spiked to highs not seen since July. This forced the price to around $42k before settling in the previously stated range. Since then we have seen volume decline. This price behavior could be in part due to uncertainties in macro forces such as real estate in China, federal reserves possible taper speed up and T Bill rate hikes. This is also reflected in the "Fear and Greed" index which sits at 27 indicating fear. However, the recent Congressional meeting regarding regulation showed progression towards better crypto regs. Add that to CPI numbers coming out as 6.8% which makes which makes Treasury bonds negative yield even deeper. Some analysts make strong claims that these numbers are deeply undervalued. Either way, in my opinion, this could be positive for assets with limited supply. Especially monetary assets such as Gold, and Bitcoin. For now, I stay with my previous prediction of trading in the 50K to 47K range before continuing higher. What's your price prediction? If you enjoy my insight (or don't) please consider tipping or leaving your valuable feedback. Thank You!
XAUUSD LONG TO 1826This analysis is a possibility. Although I see Gold dropping lower towards 1745-1735, we might see a move up first towards 1824 as a correction. Markets giving signs of moving both ways so this here is RISKY trade as both buyers & sellers will get trapped. I am not taking this long position yet, waiting for a retest of 1777 as a confirmation before opening a position.
I will be catching this move on behalf of myself and my Account Management investors✅
XAUUSD LONG TO 1824This analysis is a possibility. Although I see Gold dropping lower towards 1745-1735, we might see a move up first towards 1824 as a correction. Markets giving signs of moving both ways so this here is RISKY trade as both buyers & sellers will get trapped. I am not taking this long position yet, waiting for a retest of 1777 as a confirmation before opening a position.
I will be catching this move on behalf of myself and my Account Management investors✅
GOLD IS SET TO MOVE LOWERHello traders & investors!
We have nice setup for Gold. On daily it was rejected at important daily supply zone. Now we are stuck in little range and we can expect some sideways action.
Once we start breaking lower, it should be a vicious move.
My targets are $1676.91 & $1611.34 . Personally I am not trading it, will look for good places to add bullion at blueish ractangle.
That's it, very simple concept :)
This is not a financial advice. Until the next one!
Gold fails to build upward momentum - key areas to watchGold fell on Friday to record a 2 week low and Monday it has failed to sustain any significant upward momentum. The dip has come after Gold recently hit a 9 month high. The precious metal continues to trade at levels at around PRICE
Resistance remains strong at $1848. After that bulls will target the multi-month high at $1877. This was last touched on Tuesday. Meanwhile, $1834 has been a strong support and it remains to be seen if gold will be able to hold this level. A collapse could see price head down to levels near $1810 and then bears will be targeting a fall to the psychologically significant $1800 figure.
The term ‘inflation hedge’ has gained further relevance recently with the US printing a 3 decade high inflation figure. Gold has lagged behind equities this year, but analysts will be looking at whether it could be set for a run up with a risk-off sentiment. Austria has entered a full lockdown and many countries in Europe are battling rising Covid-19 cases. Further lockdowns could increase the inflation hedge case for gold.
Meanwhile, the dollar has shown strength which has helped to cap any gold gains. Hawkish noises from the Fed along with rising yield bonds have given it a boost in recent days.
Wednesday will be key for short-term Gold price. We will receive FOMC minutes and other data releases from the US that will influence both the dollar and gold. Will the Fed take action earlier than expected to curb inflation? So far, it seems that the market is pricing in a rate hike.
CHCI Easy 20% Gain and Hedge Against InflationCompany Profile
Sector: Real Estate
Industry: Real Estate Management & Development
Company Location: Reston, VA
Comstock Holding Companies, Inc. develops, operates, and manages properties in the greater Washington, D.C. metropolitan area. The company operates through two segments, Asset Management and Real Estate Services. The Asset Management segment provides management services to a range of real estate owners and businesses that include various commercial real estate uses, including apartments, hotels, office buildings, commercial garages, leased lands, retail stores, mixed-use developments, and urban transit-oriented developments. The Real Estate Services segment provides a range of real estate services in the areas of strategic corporate planning, capital markets, brokerage services, and environmental and design-based services in the Mid-Atlantic Region. Its environmental services group offers consulting and engineering services, environmental studies, remediation services and site-specific solutions for projects. The company was formerly known as Comstock Homebuilding Companies, Inc. and changed its name to Comstock Holding Companies, Inc. in June 2012. Comstock Holding Companies, Inc. was founded in 1985 and is headquartered in Reston, Virginia.
First Target: $5.42
Second Target: $5.67
Third Target: $6.03
Fourth Target: $6.48
Stop Loss: $5.13
Multi-year cup and handle on #gold $GLDI'm a fundamental analyst first and foremost so I've been struggling with why gold hasn't been working as inflation accelerates to mid singles y/y percent growth and only looks to be going higher due to labor constraints. I thought $BTC and #crypto took share from gold but I now think most HF investors that were in BTC are out so not sure that is the case anymore. And, crypto is now in down cycle so gold should be able to regain some share. From a technical perspective looks set to break out of this multi-year cup and handle formation, which would be a huge move.
Physical Gold Ready to Break Out! With inflation no longer appearing to be "transitory" as the FED would like everyone to believe, now is a good time to consider diversifying your portfolio with some physical gold. Yes, physical gold! You might ask, why invest in gold? It has hardly performed over the past 10 years. Well that time is now as we are right on the precipice of the FEDs transitory narrative undoubtedly falling apart. Physical gold such as a gold eagle 1 oz coin acts as a physical store of wealth for your money and is considered legal tender in many states. It's a great diversifier like bitcoin and acts as a hedge against inflation. At the current moment, the charts look exceptionally bullish for the long term. We need to see sustained movement above $1,835 to confirm, which would give us the potential of the price of gold to easily break above the most recent high of around $2,000 and end 10 years of sideways performance. At this point we would be in a price exploration phase and the heights at which the price could reach is unlimited unless proven otherwise by a confirmed change in trend.
Gold cannot simply be created digitally or out of thin air and must be extracted from the earth which requires immense amounts of energy, expertise, heavy equipment, cash and most importantly, time, to extract physical ore from the ground to be refined. There is also a limited supply of gold within the earth that can be mined economically/possibly. This is why gold has been the best performing asset in the past 5,000 years as it is the basis of the supply and demand model and has outlived many of the failed currencies of past civilizations. Once demand peaks during inflationary times when people are looking for the exit into safety, price is sure to explode with growth.
When it comes to investing in gold, it is recommended by many wealth advisors to have at a minimum of 5% of your total wealth in physical gold with a max allocation of 20%. While one of the downsides of physical gold is storing the gold there are solutions to safely house your gold, which can be kept at home in a safe or within a vault at a bank. Another play would be to purchase gold miner stocks like Barrick Gold Corporation. With the increased price of gold, these miners profits would explode, resulting in huge price increases for the extremely undervalued gold miner stocks. The added benefit of high dividends is also a huge plus when investing in miners as you can use this to generate an income while still playing the physical gold “play.”
In short, if you are looking for ways to diversify and already have an interest in assets such as bitcoin as a hedge against the impending inflation then definitely consider visiting a local jeweler and coin dealer and speaking with an expert that can guide you in your first gold purchase.