Surprisingly gold maintains upward trajectory
A bull flag pattern that’s developed on this commodity!
Recently, Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution said, “Since our last piece, gold has inched upwards overtaking the USD 2700 mark and hitting almost USD 2760. Even in domestic markets gold is now ruling at above 77k per 10 grams as Diwali gets closer. There is a bull flag pattern that’s developed on this commodity contrary to expectations and therefore further momentum is staying unabated.
Surprisingly
gold has maintained its upward trajectory despite a cooling off in tensions in
the Middle East as well as the USD rise – which should typically be negative
for gold. One suspects that the two key pivotal data points – which may not
have come to the fore for now for gold - may be the Initial Jobless Claims
report on 24 October, Thursday – where a stronger economy would mean negative
trigger for gold – and of course the US elections which are just around the
corner and could be gold negative if Trump expands his lead going into the
elections.
USD 2,600.07 is a major support level established in September followed by USD 2,525, a critical pivot point. In the short term, with the formation of the pattern and barring any unexpected news, our projected short-term price of USD 2800- 2,815 has an upside of almost 2.75% from the current prices.
The risk of course remains any sudden escalations in the Middle East – as Israeli offensives may not be easy to predict – and of course, the technically overbought position in gold which runs into several weeks of a correction less situation which may reverse without warning.”
In the row Money Metals Exchange said, “Although we are seeing a sharp price pullback this morning, gold and silver remain on bullish footing, especially after a notable 12-year breakout in silver over the past four trading days.” While Analyst Jesse Colombo meticulously explains in his recent article. Why he believes a silver squeeze has only just begun – and he boldly suggests the white metal could even run all the way up to $50 per ounce within a few months.
Meanwhile, sleuth Jan Nieuwenhuijs just uncovered some remarkable data that proves these recent rallies in gold were caused by new demand in the West. For more than two years previously, it had been Asian demand that fueled gold price advances. This shift is highly significant because investors in the West have scant holdings of gold at present, but they have high potential buying power.
Meanwhile,
U.S. retail demand for coins, bars, and rounds has picked up – but so has
selling by long-time holders. Money Metals is always happy to facilitate either
buying or selling & offering compelling pricing and great service to our
customers in either scenario.
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