Recently, I see many bearish scenarios on gold. It is a probability of course, with recognisable statements.
However, the long term Gold chart wants to tell me a story. It sais it is almost ready to take off. The technical picture is extremely bullish, just have a look at the patterns and indicators. This correction is a longer term bull flag in a cup and handle formation supported with strong support zone of 1800 USD and trendline. The monhly (august) candle close will be important, it seems to close above 1800 (bullish!) Commodities are probably in a supercycle, i think USD strenght due to tapering speculation can be short term, as delayed rate hikes and the effect of this liquidity flood are here to stay. "Demage" is done with the unlimited money printing, inflation is already flying high. Furthermore, geopolitical risks are just growing and growing....
My first (pessimistic) target is 2500 USD, the second (optimistic) is over 3000...
Time will tell.
However, the long term Gold chart wants to tell me a story. It sais it is almost ready to take off. The technical picture is extremely bullish, just have a look at the patterns and indicators. This correction is a longer term bull flag in a cup and handle formation supported with strong support zone of 1800 USD and trendline. The monhly (august) candle close will be important, it seems to close above 1800 (bullish!) Commodities are probably in a supercycle, i think USD strenght due to tapering speculation can be short term, as delayed rate hikes and the effect of this liquidity flood are here to stay. "Demage" is done with the unlimited money printing, inflation is already flying high. Furthermore, geopolitical risks are just growing and growing....
My first (pessimistic) target is 2500 USD, the second (optimistic) is over 3000...
Time will tell.