Science Investing Team
Science Investing
Gold extended to the upside. Some follow through is likely before buying demand fades.
Precious metals made once again headlines during the past week. Gold and silver spiked to the upside and gold exceeded its 2011 all-time high. It all happened on the back of an extremely optimistic sentiment and positioning. Nonetheless, the upside potential is not exhausted yet. Both metals recorded strong momentum, which hints to more buying demand at this stage. Most likely, gold trades within the 3rd wave within a C-wave of minor degree. The upside trend is well intact and 2,000 likely to get targeted before wave 4 corrects the push. Subsequently, more upside drift is likely and wave relationships point towards almost 2,100 until primary wave B(circle) ends.
Nonetheless, the extreme sentiment and positioning combined with a double zigzag off the 2015 imply that gold is within a corrective Elliott wave pattern despite climbing to all-time highs. Investors are most likely correct about their intuition for buying the precious metal. However, they will probably have to stomach some steep mark to market losses until their bet eventually proves correct.
Gold is bullish from a swing trading perspective and bearish from a position trading perspective. The party is not over and attracts some more people to join.
Interested in more of our ideas? Check out Scienceinvesting for more details!
The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Reproduction without ESI Analytics’ prior consent is strictly forbidden.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.