JICPT| Gold range move, hesitate to test previous ceiling
已更新
Hello everyone, it's been a while since I published the last trade idea. Gold has been in a strong upward trend since last November against the backdrop of weakening US dollar index. I've add two lines in the chart for reference.
Yellow line: the US dollar index. As we know, gold is priced in USD. Hence, gold and the USD normally has a negative correlation. You can seen that the gold price moved perfectly in the opposition direction of the index since Oct.
purple line: China gold reserve. We can see China started to increase holding of gold from November. Due to the geopolitical tensions, China dumped over 400 billion US treasuries to diversify its foreign reserve.
From my point of view, the two ceiling around $2073 marked in the chart is created by two different reasons. I don't think price will easily pass through it. The bottom is $1616.
What I described above is the normal case. What if gold surpasses the ceiling of $2073? Though, the probability is low, it means investors loss the confident of fiat currency and turn to the gold just like those before World War 1.
Give me a like if you're with me.
Yellow line: the US dollar index. As we know, gold is priced in USD. Hence, gold and the USD normally has a negative correlation. You can seen that the gold price moved perfectly in the opposition direction of the index since Oct.
purple line: China gold reserve. We can see China started to increase holding of gold from November. Due to the geopolitical tensions, China dumped over 400 billion US treasuries to diversify its foreign reserve.
From my point of view, the two ceiling around $2073 marked in the chart is created by two different reasons. I don't think price will easily pass through it. The bottom is $1616.
What I described above is the normal case. What if gold surpasses the ceiling of $2073? Though, the probability is low, it means investors loss the confident of fiat currency and turn to the gold just like those before World War 1.
Give me a like if you're with me.
註釋
Obviously, gold is loosing momentum after recently strong rally to the upside. 
plan your trade and trade your plan
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