Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Soars Above $1300 as Concerns Mount

Commodities / Gold and Silver 2017 Sep 08, 2017 - 01:39 PM GMT

By: ElliottWave-Forecast

Commodities

By EWFHendra : Gold has tested $1300 level 3 times since April and it finally broke above the level on Monday and rose to the highest level this year. The trigger of the break seems to be the North Korea firing a ballistic missile over Japan, which boosts the safe haven demand. The yellow metal then extended the rally to 11 month high after North Korea nuke test. Gold’s strength, however, can not be attributed to just one event, but rather over a series of concerns which start to build a wall of worry among investors.


A few weeks ago, White House chief economic adviser Gary Cohn came close to resigning after president Trump’s response of blaming “both sides” in the deadly violence at Charlottesville, Virginia. Mr. Cohn is the main architect of President Trump’s tax reform agenda, and thus when news of his possible departure started to circulate around Aug 17, markets were spooked. Then there are also concerns of government shutdown if the debt ceiling is not raised. If this happens, it will trigger technical default on U.S debt.

Apart from the argument of safe haven demand, Gold for some people is considered as the best form of sound money. Unlike fiat money which can be printed ex nihilo, Gold has limited quantities. It has survived thousands of years as a form of money, longer than any other alternative forms of payment. The chart below compares Gold’s role as store value vs the fiat:

The chart above shows that while equity markets are hitting all-time highs in USD term, it peaked against Gold in 2000 and remain 70% below the peak.

We believe Gold’s dual role as sound money and safe haven demand will become more prominent in the next coming months as the massive Quantitative Easing experiment by central banks around the world start to reveal the true costs. This month, we shall also see the market reaction to the U.S. Fed’s plans to normalize their balance sheet and taper bonds reinvestment. On paper, this is the same as money tightening and thus could have the opposite effect of money printing.
Gold Daily Elliottwave Sequence Chart

The Daily Chart of Gold shows the sequence from 12.15.2016 is bullish and favors more upside towards 1376.8 – 1417.6. When Gold reaches this area, it will also break above 7.6.2016 peak at 1375.15 which opens another larger bullish sequence from 12.3.2015 low. Thus, we don’t like selling Gold in any pullback and prefer to buy dips in 3, 7, or 11 swing.

Keep up with the most up-to-date analysis of Gold and trade together with us at Live Trading Room. Successful traders need to have a good trading system and also strict risk management with rules that define entry, stop loss, and take profit levels with high accuracy to allow traders to get into a risk free position in your trade as quickly as possible. To learn more about our services, register and try EWF 14 days FREE

By Ayoub Ben Rejeb

https://elliottwave-forecast.com

ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 52 instruments including Forex majors & crosses, Commodities and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup .

Copyright © 2017 ElliottWave-Forecast - All Rights Reserved Disclaimer: 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.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in