Inflation vs gold correlation 60's to 80's Pattern.Gold seems to like inflation. Or, is inflation food for gold? These are chars that no one is showing you.
According to this chart, Gold has a seven year bull run ahead of it that should top at some point in 2032.
This a chart of the US Inflation rate on the 2 month (Blue line) right from the horses mouth, Bureau of labour statistics. On the top in gold or yellow is the gold chart. As you can clearly see, in the seventies gold was very heavily correlated with inflation. This is not my opinion this is a fact, and it will be again.
THIS IS A 2 FOR ONE GUYS. INFLATION AND GOLD FORCAST ALL IN ONE!!
Let me know what you think down below.
Kind regards,
WeAreSat0shi
Metals
XAUUSD (1H) - Bullish Trend with All-Time HighOANDA:XAUUSD
📶 Technical Analysis:
🟢 Bullish Trend: Since the beginning of the year, Gold has been in a clear bullish trend on the 1-hour chart. The price has been consistently moving between the trendline support and trendline resistance, with multiple breaks and retests of resistance levels.
🟢 Last week, Gold reached a new all-time high of $2,817, marking the peak of the current rally.
🟡 Currently, Gold could face a potential correction towards the trendline support and the 200 MA, which is near the $2,770 level. This zone could act as a key support area where the price might bounce and resume its bullish trend.
🟠 If the trendline support is broken, we may see a limited bearish move, but the overall outlook remains bullish for now, as fundamental factors and economic uncertainty continue to support Gold.
🟢 As long as the trendline support holds, the bullish trend remains intact. The key support to watch is around $2,770, with resistance at the previous all-time high near $2,817.
🆕 Fundamental Analysis:
🟢 President Trump has threatened to impose 100% tariffs on BRICS nations and a 25% tax on goods from Canada and Mexico starting February 1, boosting demand for safe-haven assets like Gold, the Japanese Yen, and US bonds.
🟢 US GDP grew 2.3% in Q4 2024, lower than the expected 2.6%, which has sparked expectations that the Fed might not raise rates anytime soon.
🟢 There are growing concerns about a potential global recession, driven by factors like slowing economic growth, rising inflation, and geopolitical tensions. A recession could lead to weaker consumer demand, business cutbacks, and tighter financial conditions. This could result in a downturn for certain markets and an increased demand for safe-haven assets like Gold.
🔤 Conclusion:
🟢 Bullish Outlook for Gold: I remain bullish on Gold and am watching for a correction on the 1H chart, potentially around key support levels.
🟢 Support Levels: Look for bullish signals near these support levels, especially around the $2,770 zone, where the trendline and 200 MA could act as strong support.
🟠 Trend Breakout: A breakout of the trendline could signal a limited bearish movement, but as of now, the overall outlook remains bullish.
🟡 Economic Monitoring: Pay close attention to economic factors like GDP growth, inflation, and unemployment data, as these are crucial for defining future expectations and potential market shifts.
XAUUSD 2/2/25XAUUSD remains clearly bullish this week. We can see this through price action and, of course, the Orion bias, which is also bullish. We've maintained a bullish bias since the last weekly low was created, and we’ve successfully followed this entire upward move over the past couple of weeks.
If you followed along, congratulations on a strong long-term trade! However, we are now focusing on intraday and day trading opportunities. Please note that we currently have no target, as price is sitting around the all-time high. We expect price action to continue reaching new highs, but exercise caution, as we are in an exploration phase, meaning price is moving into uncharted territory. Look for rebalancing, which presents opportunities to buy back into the next expansive move.
We have the V2 Entry Level Indicator running, and the dotted lines represent our high-volume lows—key areas of interest for identifying expansive moves into new highs. Right now, we have two priority lower areas, which we will monitor for potential re-accumulation of long positions. However, since we are in an exploration phase, price may continue moving higher without retracing to these levels.
Watch for one of two scenarios:
A pullback into the lower areas, followed by an expansive move upward.
Continuous expansive moves, with new lows developing along the way.
Regardless of how price unfolds, our bias remains the same unless the bias changes with the daily—we anticipate further expansion to the upside.
Trade within your risk parameters, follow your rules, and always let Orion guide you.
Weekly and Monday analysis for Nasdaq, Oil, and GoldNASDAQ
NASDAQ filled the gap and closed lower after facing resistance. As mentioned last Friday, the 21,911 level was a likely resistance zone due to the nature of the gap. This resistance played a significant role, and coincidentally, concerns over tariffs imposed by former President Trump on Mexico and Canada intensified, leading to a decline into the afternoon session.
Since the monthly candle has closed, let's first analyze the monthly chart. Last month, I mentioned that a decline to the 5-day moving average (20,880) was possible before a rebound, and indeed, the index rebounded from 20,700. Given that the price sequentially bounced from the 3-day and 5-day moving averages after breaking out of the monthly range, this month presents a challenging situation for determining direction. While further upside is possible, the monthly MACD may attempt to reduce its gap with the signal line, making a strong rally less likely. If a sharp rally occurs, the upper Bollinger Band at 22,736 should be considered as resistance. On the downside, the monthly 5-day moving average at 21,084 may be tested this month. Since the market could move in either direction, chasing momentum on the monthly chart should be approached with caution.
On the weekly chart, a sell signal remains active, with the MACD failing to cross above the signal line, suggesting that further downside remains likely.
On the daily chart, while the MACD has not yet crossed below the signal line, today's bearish candle close may trigger a sell signal, opening the possibility of a move toward the lower Bollinger Band and the 120-day moving average. If the MACD does not break down and instead turns higher while the price rises, it will be crucial to see if the 21,911 gap is decisively broken and closed with a bullish candle.
On the 240-minute chart, a buy signal is still in place, and the index remains in a large range. Buying on dips remains favorable, but if a sell signal appears, the current moving average setup suggests a high probability of sharp declines.
This week, Google's earnings report on Tuesday and the Non-Farm Payrolls (NFP) report on Friday are key events to watch. Additionally, with the potential impact of Trump’s tariff policies increasing market volatility, traders should manage leverage carefully and remain cautious.
Crude Oil
Oil closed near breakeven but surged in after-hours trading following reports that Canadian energy imports may face new tariffs.
On the monthly chart, oil remains within a range, but the MACD is persistently attempting to cross above the signal line. Last month’s breakout from a four-month consolidation range suggests that buying on dips at the 3-day moving average may be a favorable strategy.
On the weekly chart, the buy signal remains intact. Despite some pullback, the large gap between the MACD and the signal line suggests that a sharp breakdown is unlikely.
On the daily chart, as previously mentioned, the $72 level remains a strong buy zone. The MACD is in a steep downtrend, but given the presence of prior demand zones and the 240-day moving average acting as support, a technical rebound could be strong after two weeks of declines.
On the 240-minute chart, the MACD has bounced off the signal line, forming a bullish divergence, making long positions more favorable. Given the characteristics of the 240-day moving average, a rebound toward $74.50 is technically reasonable.
Overall, buying on dips remains a preferred approach, but market volatility is increasing due to geopolitical uncertainties, so trade cautiously.
Gold
Gold pulled back as profit-taking emerged after a sharp rally, closing lower after finding support at the 3-day moving average.
On the monthly chart, gold formed a strong bullish breakout candle, making dips toward the 3-day moving average (2,770) a favorable buying opportunity this month. A pullback to this level should be expected.
On the weekly chart, a buy signal appeared last week, but the MACD’s lower value compared to the previous peak suggests a potential bearish divergence. This means that despite breaking above prior highs, if the MACD fails to confirm with strong upward momentum, the rally may weaken. Caution is advised when chasing momentum.
On the daily chart, today is a key day for buy setups near the 5-day moving average, making a pullback likely. However, the broader trend remains bullish, so rather than shorting, traders should look for opportunities to buy on pullbacks at key support levels.
On the 240-minute chart, gold is facing resistance and declining. The MACD is at a high level, meaning even if a bearish crossover occurs, attempts to move higher may persist. Buying near support remains the preferred approach.
With Trump’s increasing policy activity and China’s Deepseek issues, market volatility is expected to rise. Always prioritize risk management and trade safely. Wishing you a successful trading month!
■Trading Strategies for Today
NASDAQ - Bullish Market
-Buy : 21,530 / 21,460 / 21,420 / 21,370 / 21,290
-Sell : 21,590 / 21,690 / 21,775 / 21,850 / 21,930
Crude Oil - Range Market
-Buy : 73.50 / 72.90 / 72.40 / 72.00
-Sell : 74.50 / 75.00 / 76.00 / 76.40
Gold - Bullish Market
-Buy : 2,825 / 2,820 / 2,812 / 2,807 / 2,804
-Sell : 2,841 / 2,846 / 2,852 / 2,856 / 2,860
These strategies apply only during pre-market hours. Profit-taking and stop-loss levels are as follows: Nasdaq: 15 points, Oil and Gold: 20 ticks.
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LITECOIN BITCOIN (BEST-CASE)Like Bitcoin, CRYPTOCAP:LTC is first and foremost a digital currency that can be exchanged peer-to-peer, untrusted and securely, very quickly and at minimal cost.
The modifications made to the Bitcoin blockchain to give rise to Litecoin’s blockchain required only minor efforts in terms of IT development, as most of the innovation came from Bitcoin.
Nevertheless, Litecoin’s strength lies in the fact that these changes are few but significant:
A ”proof of work” that uses the Scrypt hash function rather than SHA-256 for Bitcoin
Block creation four times faster, with an average interval of 2.5 minutes instead of 10 minutes
Total number of units four times greater, with 84 million instead of 21 million
Mining difficulty changes every two and a half days instead of every two weeks
On the other hand, as with Bitcoin, the issuance of new litecoins is halved every 4 years (halving): since August 2019, miners have received 12.5 litecoins as a reward for each block validated.
Copper Set to Rally: Bullish Setup with Massive Upside PotentialCopper is holding firmly at a key support level and poised for a potential breakout. The combination of bullish macroeconomic factors and tightening supply suggests significant upside potential.
China’s Growth Push:
Chinese leaders are targeting 5% annual growth in 2025, with plans to boost domestic consumption and infrastructure spending, key drivers of copper demand.
Robust Demand Drivers:
Industries like EVs, power grids, and air conditioning continue to drive structural demand for copper, aligning with the global shift toward electrification and renewable energy.
Supply Challenges:
Multi-month low inventories in Shanghai warehouses signal tight supply conditions.
Peru’s flat output and Chinese smelter profitability issues add further pressure to global supply.
With these factors converging, copper prices are primed for a bullish move from current levels.
Trade Setup
TP1: $4.3498
TP2: $4.6347
TP3: $5.000
Stop Loss: $3.8622
This trade setup offers an excellent risk-to-reward ratio, with tightening supply and robust demand creating a solid foundation for bullish momentum.
Gold Bullish Run: Targeting $2,900 - Time to Ride the Wave! 📈 Gold Analysis: Bullish Setup
🟢 Current Price: 2,607
🎯 Take Profit 1: 2,635
🎯 Take Profit 2: 2,680
🎯 Take Profit 3: 2,790
🎯 Take Profit 4: 2,900
🔹 Stop Loss: 2,524
📈 Why This Trade?:
Gold continues to trade within a bullish channel, having broken above 2,144 back in March. With higher highs and higher lows consistently forming, the trend remains strong.
The stop loss is positioned below both the 50MA and recent lows at 2,524, allowing for market fluctuations while keeping risk under control.
⚠️ Risk Management Reminder:
Although the bullish trend remains intact, trends can change quickly. Always apply proper risk management and ensure you’re not over-leveraging. A drop below 2,524 would signal a potential shift in the market, invalidating this setup.
Stay tuned for updates! 🚀
GOLD 1H CHART ROUTE MAP & TRADING PLAN FOR THE WEEKHey Everyone,
Please see our updated 1h chart levels and targets for the coming week.
We are seeing price play between two weighted levels with a gap above at 2807 and a gap below at 2794. We will need to see ema5 cross and lock on either weighted level to determine the next range.
We will see levels tested side by side until one of the weighted levels break and lock to confirm direction for the next range.
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
2807
EMA5 CROSS AND LOCK ABOVE 2807 WILL OPEN THE FOLLOWING BULLISH TARGET
2819
EMA5 CROSS AND LOCK ABOVE 2819 WILL OPEN THE FOLLOWING BULLISH TARGET
2832
EMA5 CROSS AND LOCK ABOVE 2832 WILL OPEN THE FOLLOWING BULLISH TARGET
2845
BEARISH TARGETS
2794
EMA5 CROSS AND LOCK BELOW 2794 WILL OPEN THE FOLLOWING BEARISH TARGET
2778
EMA5 CROSS AND LOCK BELOW 2778 WILL OPEN THE FOLLOWING BEARISH TARGET
2764
EMA5 CROSS AND LOCK BELOW 2764 WILL OPEN THE RETRACEMENT RANGE
2753 - 2739
EMA5 CROSS AND LOCK BELOW 2739 WILL OPEN THE SWIG RAGE
SWING RANGE
2722 - 2707
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 4H CHART ROUTE MAP & TRADING PLAN FOR THE WEEKHey Everyone,
Please see our updated 4h chart levels and targets for the coming week.
We are seeing ema5 and price play between two weighted levels with a gap above at 2800 and a gap below at 2772. We need ema5 to cross and lock above or below the weighted Goldturns to determine the next range.
We will see levels tested side by side until one of the weighted levels break and lock to confirm direction for the next range.
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
2800
EMA5 CROSS AND LOCK ABOVE 2800 WILL OPEN THE FOLLOWING BULLISH TARGET
2826
EMA5 CROSS AND LOCK ABOVE 2826 WILL OPEN THE FOLLOWING BULLISH TARGET
2852
BEARISH TARGETS
2772
EMA5 CROSS AND LOCK BELOW 2772 WILL OPEN THE RETRACEMENT RANGE
2744 - 2712
EMA5 CROSS AND LOCK BELOW 2712 WILL OPEN THE SWING RANGE
SWING RANGE
2685 - 2655
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 DAILY CHART MID/LONG TERM UPDATEHey Everyone,
Please see the daily chart update we have been trading and tracking for a while now, to give you all an overall view of the range and how we have been hitting targets after targets.
Previously we stated that we have a candle body close above 2686 opening 2760 and we now also had ema5 lock to further confirm this gap, which was hit perfectly completing this target and allowing plenty of time after the confirmation to get in for the action.
We then had a candle body close above 2760 with a gap above at 2797, which was hit last week completing this target.
2797 has left no further candle body close and therefore we may see some rejection here. We will now look for a body close above this level to confirm a continuation or we will see lower Goldturns tested for support to establish long term range. We have now also updated the retracement and swing range on this chart.
We will use our smaller timeframe analysis on the 1H and 4H chart to buy dips from the weighted Goldturns for 30 to 40 pips clean. Ranging markets are perfectly suited for this type of trading, instead of trying to hold longer positions and getting chopped up in the swings up and down in the range.
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 using our smaller timeframe ideas.
Our long term bias is Bullish and therefore we look forward to drops like this, which allows us to 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 MONTHLY CHART LONG TERM/RANGE ROUTE MAPHey Everyone,
Please see update on our monthly chart idea for our long term/range analysis.
Previous month in December we stated that the month started with a detachment to ema5 below for a correction, which was highlighted with a small mini circle on the chart for visual purpose.
- This detachment to ema5 was completed perfectly.
We also stated last month in December that the area above 2589 is a strong level of support with ema5 providing dynamic support now for a bounce.
- This also played out perfectly with ema5 providing dynamic support and above our 2589 support level for the push up, perfectly hitting our axis target 2702.
We then stated that we had two days for month end and will need a body close above 2702 for confirmation for a further continuation or a body close below 2589 to confirm the channel top test below. We also stated that if price closes this month in this range without the body closes, then we are likely to see play between this range for another month with not much detachment on the next monthly candle to ema5, which means the likely dynamic support should be provided by ema5 from the beginning of the month.
- This played out perfectly in January as the the ema5 provided the dynamic support right from the start, which followed with a nice push up. We now also have a candle body close above 2702 leaving a gap to 2825 Axis our long term target that we have been tracking over the months.
We will continue to use all support structures, across all our multi time frame chart ideas to buy dips also keeping in mind our long term gaps above. Short term we may look bearish but looking at the monthly chart allows us to see the bigger picture and the overall long term Bullish trend.
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
BRIEFING Week #5 : Still Patient...Here's your weekly update ! Brought to you each weekend with years of track-record history..
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GOLD (XAUUSD): Support & Resistance Analysis For Next Week
Here is my latest structure analysis for Gold for next week.
Vertical Structures
Vertical Support 1: Rising Trend Line
Vertical Resistance 1: Rising Trend Line
Horizontal Structures
Resistance 1: 2816 - 2820 area
Support 1: 2786 - 2790 area
Support 2: 2718 - 2732 area
Support 3: 2689 - 2698 area
Support 4: 2655 - 2663 area
Support 5: 2614 - 2635 area
Support 6: 2596 - 2605 area
Support 7: 2583 - 2585 area
Consider these structures for pulback/breakout trading.
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Understanding XAU/USD TradingXAU/USD represents the value of one troy ounce of gold in US dollars and is one of the most actively traded assets in the financial markets. It is often used as a hedge against inflation, currency devaluation, and economic uncertainty. Traders and investors closely monitor XAU/USD due to its strong correlation with macroeconomic factors, such as central bank policies, geopolitical risks, and market sentiment.
Key Factors Affecting XAU/USD
1. US Dollar Strength – Since gold is priced in USD, a stronger dollar typically weakens gold prices, while a weaker dollar supports them.
2. Interest Rates & Fed Policy – Lower interest rates make gold more attractive, as it doesn’t yield interest, whereas higher rates make other assets like bonds more appealing.
3. Inflation & Economic Uncertainty – Gold is considered a safe-haven asset, meaning its demand rises during periods of economic instability or high inflation.
4. Central Bank Reserves – Central banks globally hold gold as a reserve asset, and their buying or selling activities influence prices.
XAU/USD Trading Strategies
• Trend Following: Traders use moving averages and technical indicators like MACD and RSI to capitalize on gold’s long-term trends.
• Breakout Trading: Monitoring key resistance and support levels to enter trades when price breaks above or below significant levels.
• News-Based Trading: Economic reports such as Non-Farm Payrolls (NFP), CPI, and Federal Reserve announcements can cause high volatility in gold prices.
Why Trade XAU/USD?
Gold is a 24-hour market, highly liquid, and offers significant opportunities for both short-term traders and long-term investors. It is influenced by global economic events, making it an exciting instrument for traders looking to hedge risks or profit from price movements.
Gold’s Gleam: Navigating the Bullish Terrain Amid Global UncertaAs of February 1, 2025, gold (XAU/USD) is trading around $2,733 per ounce, reflecting a robust uptrend. Technical indicators, such as the price holding above key moving averages and a bullish MACD crossover, suggest continued upward momentum. Fundamentally, gold’s appeal as a safe-haven asset is bolstered by ongoing geopolitical tensions and expectations of stable or lower interest rates from the Federal Reserve. Looking ahead, if gold maintains support above $2,710, it could target resistance levels near $2,765 and $2,790. However, stronger-than-expected U.S. economic data or hawkish Fed policies could pose downside risks.
Weekly Market Forecast Feb 2-7thThis is an outlook for the week of Feb 2-7th.
In this video, we will analyze the following FX markets:
ES \ S&P 500
NQ | NASDAQ 100
YM | Dow Jones 30
GC |Gold
SiI | Silver
PL | Platinum
HG | Copper
The indices were not easy to trade last week, as there were plenty of fundamentals at play. However, they are relatively still strong, and I am looking for further gains next week.
NFP week, imo, is best traded Mon-Wed. Thurs will likely see consolidation until the NFP news announcement Friday morning. I will look to fade the news release on Friday for NY Session.
Enjoy!
May profits be upon you.
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Disclaimer:
I do not provide personal investment advice and I am not a qualified licensed investment advisor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
I will not and cannot be held liable for any actions you take as a result of anything you read here.
Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or otherwise.
The Market Matrix - Gold, Crude, DXY & Nasdaq for Feb 1 2025This weeks edition of The Market Matrix.
Disclaimer
The information provided in this content is for educational and informational purposes only and should not be construed as financial advice, investment recommendations, or an offer to buy or sell any securities or financial instruments.
Trading financial markets involves significant risk, including the potential loss of capital. Past performance is not indicative of future results. You are solely responsible for your trading decisions and should conduct your own research or consult with a licensed financial advisor before making any financial decisions.
The creator of this content assumes no liability for any losses or damages resulting from reliance on the information provided. By engaging with this content, you acknowledge and accept these risks.
Dollar - Gold Market CorrelationThe Dollar (DXY) has closed extremely bullish this week. This is another confluence that we can see Gold (XAUUSD) start moving down soon or later.
As you all know the DXY & XAUUSD have negative market correlations, so when one moves up the other move down. The Dollar has been correcting down recently, which has led to Gold pushing up & creating new ATH’s. However, I now expect Dollar bulls to resume, which means we can see Gold get ready for a bear market in the mid term.
Golden Opportunities: Navigating the New Era of InvestmentFolks, we're witnessing something truly remarkable with XAUUSD. Gold's weekly uptrend is not just a blip on the radar; it's a beacon signaling a return to the fundamentals I've been harping on for ages. Recall my earlier insights? I pegged the long-term trend in Gold, and here we are, watching it soar. Trump's chatter about inflation and rates? It's like watching a chess game where each move by the Fed could be influenced by such rhetoric. The market, my friends, seems to be betting on this narrative, pricing in these potential shifts.
Now, let's not forget the basics. Historically, precious metals dance to the tune of real interest rates - those inflation-adjusted numbers. Sure, during times of market panic or geopolitical tension, Gold might get caught in the crossfire as either a collateral darling or a safe haven. But in these calmer waters, it's the real rates that dictate the dance. So, keep your eyes on the prize. Gold isn't just shining; it's setting the stage for what might be a golden era in investment. Watch, learn, and maybe, just maybe, enjoy the ride as we navigate these waters together. Stay vigilant, and may your investments be as golden as your opportunities.
Horban Brothers,
Alex Kostenich
SILVER: Short Trading Opportunity
SILVER
- Classic bearish setup
- Our team expects bearish continuation
SUGGESTED TRADE:
Swing Trade
Short SILVER
Entry Point - 31.324
Stop Loss - 31.671
Take Profit - 30.750
Our Risk - 1%
Start protection of your profits from lower levels
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SILVER // bull trend in sync across major timeframesThe trend has just become bullish across the monthly, weekly, and daily timeframes, however, the market is still in an accumulation phase.
Each dashed level represents an untested breakdown that requires attention from the buyers.
If the market transitions into the expansion phase, the Fibonacci target levels on the weekly and daily timeframes become valid targets.
Key Fundamentals
Silver has experienced significant price movements, driven by industrial demand, supply constraints, and macroeconomic factors. As of late January 2025, silver is trading at $33.88 per ounce, reflecting a 3% decline after a two-week rally that pushed it to nearly 13-year highs. Despite the recent pullback, silver has surged 40% over the past year.
Key Factors
Industrial Demand:
Silver is widely used in solar panel manufacturing and electronics, with industrial demand reaching a record 654.4 million ounces in 2023, marking the third consecutive year where demand outpaced supply (Investopedia).
Supply Constraints:
Global silver supply has struggled due to weaker mine production and labor strikes in major producing countries like Mexico. These disruptions have contributed to a supply deficit, further supporting higher prices (Wall Street Journal).
Investment Demand:
Economic uncertainties and lower interest rates have driven investors toward precious metals as safe-haven assets. The iShares Silver Trust alone saw $856 million in inflows, reflecting rising investor interest (Wall Street Journal).
Macroeconomic Factors:
The Federal Reserve’s recent interest rate cuts have increased the appeal of non-yielding assets like silver. Meanwhile, China’s increased investment in silver, partly due to gold import restrictions, has further bolstered demand (Wall Street Journal).
Actionable Insights
Bullish Case:
Continued Industrial Demand: With ongoing growth in renewable energy and electronics, silver demand is expected to remain strong.
Supply Deficits: Ongoing production challenges could sustain upward price pressure.
Bearish Case:
Economic Recovery: If the global economy recovers faster than expected, investor preference may shift away from safe-haven assets, leading to a price decline.
Interest Rate Increases: If central banks reverse course and raise interest rates, the appeal of non-yielding assets like silver could diminish.
———
Orange lines represent impulse bases on major timeframes, signaling the direction and validity of the prevailing trend by acting as key levels where significant momentum originated.
Level colors:
Daily - blue
Weekly - purple
Monthly - magenta
H4 - aqua
Long trigger - green
Short trigger - red
Clean (not yet tested) breakdown - dashed green
Clean (not yet tested) breakout - dashed red
———
Stay grounded, stay present. 🏄🏼♂️
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