Wow....What a week right! I'll be honest I didn't bother staying up for most important event but we had BOE, Australia further easing, further bond buying is the theme globally (KEEP THAT IN MIND) and then most important elections, with Biden ahead and Trump wanting to go court. It's all very interesting but let me break down my fundamental and technical view regarding gold which keep in mind is pegged the dollar!
Fundamentally: We are in the the area of where most CB's are at 0% mostly all and USA has inflation target of 2% but they do need QE remember, no matter who gets elected they really do need stimulus as Powell stated. Now QE, the larger the package the further decrease of dollar depreciation. When this occurs check out the market, risk on or risk off and we will get further dollar decrease either way driving energy and precious metals further. Gold, I feel is going to head higher short and longer term. Take a deep dive research within economic cycles, plenty of good books out there regarding these fundamentals.
Technically: We have broken out of the triangle formation, yes we are still within this range, we could see a pull back towards the areas of: 1916 -1900 areas and if that support holds it's a great buy zone to go further 2000 areas and head higher, 2200-2400 my overall longer/medium target. XAG targets - 30,35,40.
Check the ratio of XAU/XAG looking at which is a better pair to buy during this highly bullish momentum and remember, you want a good R/R (Risk/Reward) Don't rush to get into the market. For this moment of time, I doubt if Biden does become president that he can increase taxes as much he was hoping to but I am sure further QE is coming so.. this means...Higher energy prices, commodities, G10 currencies and equities.
Key tip: (Aussie out of nice pattern too!!)
All the best for the week ahead - Trade safe and follow your plan.
Take care,
Trade Journal
(Just a trade idea, not a recommendation)
Fundamentally: We are in the the area of where most CB's are at 0% mostly all and USA has inflation target of 2% but they do need QE remember, no matter who gets elected they really do need stimulus as Powell stated. Now QE, the larger the package the further decrease of dollar depreciation. When this occurs check out the market, risk on or risk off and we will get further dollar decrease either way driving energy and precious metals further. Gold, I feel is going to head higher short and longer term. Take a deep dive research within economic cycles, plenty of good books out there regarding these fundamentals.
Technically: We have broken out of the triangle formation, yes we are still within this range, we could see a pull back towards the areas of: 1916 -1900 areas and if that support holds it's a great buy zone to go further 2000 areas and head higher, 2200-2400 my overall longer/medium target. XAG targets - 30,35,40.
Check the ratio of XAU/XAG looking at which is a better pair to buy during this highly bullish momentum and remember, you want a good R/R (Risk/Reward) Don't rush to get into the market. For this moment of time, I doubt if Biden does become president that he can increase taxes as much he was hoping to but I am sure further QE is coming so.. this means...Higher energy prices, commodities, G10 currencies and equities.
Key tip: (Aussie out of nice pattern too!!)
All the best for the week ahead - Trade safe and follow your plan.
Take care,
Trade Journal
(Just a trade idea, not a recommendation)
Note
Bare in mind - Biden has won. Trump still wants to take the legal action - This weeks opening will be very interesting. Enjoy & Trade safe.Trade active
I have been long since last week - Target areas 2006 areas.Trade closed: stop reached
Got stopped out I won't be entering until clear technical and fundamental view. Extreme volts due to Vaccine announcement - We could decline towards 1800 areas. I expect QE not to be as big package given the news...Trade safe.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.