On analysis of the movements of Gold Futures, in different time frames, I find that the sudden sell-off by Gold, seems to be only a temporary phenomenon while human psychology has been struggling.
Friday’s sudden sell-off in gold was accompanied with selling spree in equity markets due to sudden rush for margin calls for funds to hold positions in equity markets; which resulted in some selling pressure in safe haven. I find that the downward move in Gold futures is not an end of the current uptrend in Gold; as a wall between probabilities and possibilities in the spreading Coronavirus still seems to be very thin. The ‘Gold Rush’ may continue for some more time.
However, prevailing risk in global equity markets may find some support from the Fed, but a rate cut looks evident enough to encourage gold bugs to move upward on uptrend voyage which may have some hurdles ahead during the month of March 2020. Watch my upcoming video on gold; subscribe my YouTube channel ‘SS Analysis’.
Finally, I conclude that the bullish consolidation seen during the last hours on Friday may result in a strong reversal in Gold futures during the upcoming week.
1. This content is for information and educational purposes only and should not be considered as an investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital be involved which you are prepared to lose.
2. Remember, YOU push the buy button and the sell button. Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from an investment and/or tax professional before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.
Gold Rush May Continue But Not Hassle Free
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.