GOLD/XAUUSD
GOLD is ready to resume its rise from the level of 1557 and will hopefully find a target to try the nearest major resistance at level 1625.
GOLD jumped sharply this week after successfully breaking major resistance at the level 1500.
Current developments indicate that the fall of GOLD from this highest weekly from level 1554.00 to 1544.00 was completed at level 1445.50 and supported by 38.2% fibonachi retracement.
GOLD MARKET :
There is a well-worn trading floor cliché: "Hedging is for gardeners," but if there was one hedge that investors were likely happy to have stuck with over the turn, it was hedging into gold.
I still don't expect explosive gain to happen unless we get a Fed dovish pivot and trigger a massive US dollar decline where gold will perform well.
Despite the December melt-up in stocks, the fact we're little more than two months away from recessionary dashboards flashing red and especially given the Feds reactive nature to downshifts int he US economy. It makes sense that gold should be a critical part of everyone's portfoli
With the S&P 500 trading near all-time highs, gold as a hedge against an equity pull-back makes sense for no other reason than the long equity view is way to consensus, the current SPX entry points look horrible while the December equity market rally cam at a time where markets tend to overshoot, but it's all too eerily too reminiscent of 1989, 1999 and 2009 where bullish sentiment at the turn of the decade in January.
An environment of low rates, persistent macro uncertainty, and elevated equities makes a case for holding gold as a hedge. This view could likely drive demand for gold higher into 2020 and lend support to the current medium-term uptrend.
TECHNICALLY MONTHLY OUTLOOK
FIBONACCI :
PIVOT - 1504.00
SUPPORT - 1477.00 / 1461.20 / 1434.80
RESISTANCE - 1530.40 / 1546.80 / 1573.20
CLASSIC :
PIVOT - 1504.00
SUPPORT - 1479.00 / 1435.00 / 1409.00
RESISTANCE - 1548.50 / 1573.00 / 1617.00
MACD : (12,26) - BUY
CCI : ( 14 ) - BUY
MOVING AVARANGE :
200 - BUY
100 - BUY
50 - BUY
20 - BUY
10 - BUY
5 - BUY
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