Tuesday, April 22, 2014

Have we gotten the first signal that gold is just about to collapse?

In early posts, I have explained myself why I like to be long USD in general, so I dont want to waste your time again.
 
What I would like to highlight is the technical picture in Gold. After breaking the trendline coming from Oct 2012 (because of geopolitical tensions between Ukraine and Russia), Gold has re-established its downward trend, and it is sitting just above its 100 day MA that coincides with the lows seen at the beginning of April (1277 USD per ounce). Furthermore, we just got bearish signals from the MACD and Stochastics indicators (although not very strong).
 
I would recommend to wait for a break of 1275 USD (on close) to initiate short positions, targeting 1200 in the next 3 months.
 

1 comment:

  1. Qué tal, Andres? I've been traveling alot - but keep reading your posts. 'Last Thursday gold was ‘whacked’ again to 10 week lows at $1280. Soc Gen stood out with a report calling for a technical break to $1233 upon a close below $1275. Where upon gold rallied and all precious metals had an outside trading day (silver a near outside week)! Gold was higher for a 3rd day and bounded to close higher into the weekend (unless peace breaks out). The Ukraine conflict is the sole reason behind higher gold prices beyond the ever yearning Chinese demand. Other precious metals moved higher on a weaker $ and geo, political economic issues i.e. South Africa miners issues. The US led game of sanctions brinksmanship is a game the US lost and now the EU suffers, via higher energies of likely everything- the worlds formerly 2nd largest GDP is clearly stymied and clears a path for the ECB to stimulate.

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