Why gold prices need to consolidate | Metals Mine

  • Why gold prices need to consolidate

    From home.saxo

    Two weeks of steep gains in gold have left the yellow metal in need of consolidation, not least considering that the price has once again returned to the hitherto impenetrable area of resistance between $1,350 and $1380/oz. Weaker stocks and lower bond yields over the past few months were not enough to shake gold out of its established range. What changed was the sudden acceleration in the market expectations for US rate cuts. This followed a batch of weak economic data from major economies and signs that the US-China trade war was moving towards a new Cold War in tech. During the past two weeks, the market has ... (full story)

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perma-bull
Jun 6, 2019 9:35am
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We maintain the view that global growth momentum is slowing and likely to worsen further before renewed policy panic from global central banks will help to stabilise the outlook. On that basis, we believe that gold, following a period of consolidation, could eventually challenge resistance with a break signaling a potential $100 extension to the upside towards $1,480/oz, the 50% correction of the 2011-15 sell-off.
i think i'll use the "dad" indicator and keep buying until my pops asks me if he should buy gold...
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bigtx
Jun 6, 2019 7:01pm
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Definitely a lot of resistance built up just below $1,400. Maybe short term consolidation, but the break to the upside is likely. Trump and the boys will ensure people stay scared. Strap in!
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