Elliott Wave: Gold comes lower as US yields continue to rise [Video]

Gregor Horvat Wavetraders

Hope you had a wonderful weekend. As you know, metals have seen a pretty volatile start to the week. We see both gold and silver coming quite aggressively lower ahead of China’s Golden Week between October 1st and October 7th. At the same time, the Shanghai Gold Exchange has announced higher margin requirements for both gold and silver. So some may have to do some repositioning there, and that’s one of the reasons why we are seeing this drop. On top of that, if we add a hawkish Fed and still no deal between the U.S. and Iran, then of course, with a stronger U.S. dollar, it’s easier to understand why gold is down.

However, the dollar has seen a pretty nice and extended leg so far this month, so we may see some retracement in the near future, but any kind of pullback will most likely be just part of a higher degree uptrend on the Dollar Index, which could even move closer to 103 in the weeks ahead. I discussed all of this in our webinar and also mentioned cryptocurrencies, where Bitcoin could be setting up for a potential deeper pullback if some key 4-hour trendline support is broken. We also looked at Nasdaq 100, which has nice support near 30K.

If you missed the live session or want to review the charts again, the recording is below.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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