Predictions for Gold Prices
Be sure and check out this short video about the outlook for gold in this link here: https://youtu.be/VS5mgeboVhY
Where are gold prices going to go to next? Will the strength of the dollar bring gold prices down even further. Or will inflation skyrocket and bring gold prices into an uptrend. Let's take a look at what's going on macroeconomically and let's check out the technical analysis for gold so we can get a good idea about where gold prices are going to move to in the future.
Technical and Macro Outlook
The long-term technical picture for gold shows that we are in a long-term ranging pattern and the price is just near a major support level around the $1,700 area. This is a very strong support level so we should watch a bounce or a break down here off of a strong news catalyst or some sort of macroeconomic catalyst like inflation or a US dollar rally for example.
Most people are wondering why gold has not skyrocketed because inflation is skyrocketing like crazy. But gold did initially rally with inflation in November. But around March inflation was continuing to rise but gold had a massive downtrend that started. The reason for this is the strength of the US dollar.
you can see in the charts that gold and the dollar rallied with inflation they both approached their recent highs from a long term time frame. These are strong areas of resistance. But gold rejected the recent highs and the US dollar continue to rally. Since the value of gold is measured by the value of the US dollar then a strengthening value in the dollar will weaken the value of gold theoretically.
So basically the price of gold is greatly dependent on the price of the US dollar Index and you can see a very strong inverse correlation in fact.
When you look at the charts and you match up the dates of the US dollar Index and Gold Future's charts then you can see how each bear Market rally in Gold perfectly corresponds with these strong downtrends in the US dollar. That goes to show you how there is a strong inverse correlation with gold in the US dollar and the price of gold will absolutely depend on the direction that the US dollar Index is traveling.
So if you're invested in gold or any gold related equities then you definitely need to be watching the US dollar Index, inflation data, and also keep watching the very strong support level here around the $1700 area.
$VanEck Gold Miners Equity ETF(GDX.US$ $VanEck Junior Gold Miners ETF(GDXJ.US$ $MICROSECTORS GOLD MINERS 3X LEVERAGED ETN(GDXU.US$ $Barrick Gold(GOLD.US$ $Hycroft Mining(HYMC.US$
$SPDR Dow Jones Industrial Average Trust(DIA.US$ $Invesco QQQ Trust(QQQ.US$ $iShares Russell 2000 ETF(IWM.US$ $VIX Index Futures(MAY4)(VXmain.US$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf(UUP.US$ $SPDR S&P 500 ETF(SPY.US$ $iShares 20+ Year Treasury Bond ETF(TLT.US$ $SPDR Gold ETF(GLD.US$ $iShares Silver Trust(SLV.US$ $Crude Oil Futures(JUN4)(CLmain.US$ $Ishares Iboxx $ High Yield Corporate Bond Etf(HYG.US$ $Ishares Iboxx $ Investment Grade Corporate Bond Etf(LQD.US$ $Copper Futures(JUL4)(HGmain.US$ $Hang Seng Index(800000.HK$ $CSI 300 Index(000300.SH$ $SSE Composite Index(000001.SH$ $S&P/ASX 200(.XJO.AU$ $FTSE Singapore Straits Time Index(.STI.SG$
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Mike Obama : gonna get slammed. euro, yuan. alot of dynamics here
Mike Obama : will pop tho
SpyderCallOP Mike Obama: agreed. ultra long term is always good for gold. But short tem might look iffy
Violets : AUY October
Sgtrader88 : Have the global market factored in the risk of nuclear power plant leak or melt down in Ukraine?
https://www.rt.com/russia/562075-zaporizhzhia-nuclear-power-plant/
WallStreetYoda : short term mostly bearish with spikes Sprinkled in long-term Greatest buying opportunity in a while wont always have this type of chance
Dons hobby Sgtrader88: Great information Sg, we all appreciate you taking the time to post and share this with everyone. Thanks again Sgtrader