GOLD IS SET TO MAKE NEW ALL-TIME HIGH
The price of the precious metal is set to make a new all-time high as aggressive buyers step in. The last month's candle closed as DOJI, leaving a long wick below. That shows the presence of aggressive buyers as price picked support from $1680. Gold has been rising for three consecutive weeks as August comes to an end. The price of Gold is trading around $1814 as September begins.
Gold reached its all-time high, $2075, in early 2020 as the pandemic hits the world, creating a surge in the global market. Gold has been pulling back since mid-2020. The pullback is finally coming to an end as the market readjusts itself for the resumption of the long-term trend. Gold has been pulling back/retracing for over a year and it will be nice to ride on the trend as BIG BUYERS step in.
The pullback phase has completed its three legs as the price reached its lowest price of $1677 in March 2021. The price of Gold rallied from the support level at $1677 and rose to $1916 in May. Price crashed from the $1920 supply level and crashed back to $1677 in August, and used the price area as good support. Price rallied back quickly for the second time from the $1677 support level, leaving a long wick at the bottom of the monthly candle that closed yesterday as August comes to an end.
The next resistance level is at $1830 and once it gets taken out, Gold will rally back to $1920. NFP will be released on Friday and a negative result will make Gold to be more volatile.
Fundamentally, non-commercials are increasing their long positions on Gold, according to the last COT REPORT that was released last Friday. Although, new data must have come out yesterday as the COT data comes in every Tuesday but doesn't get published until Friday. Big money is buying more Gold, which supports the long bias.
Also, the end of the year is coming to an end as we enter the "...ember" months. Gold mining will be reduced/stopped as miners prepare to stop mining for the year to rest. The demand for Gold will increase as people buy more jewelry to celebrate Christmas and New Year. The decrease in Gold supply and increase in demand will make the price skyrocket.
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