This week, I will touch upon the precious metal: Gold
(yellow precious metal, used in jewellery and decoration and to guarantee the value of currencies).
Since Brexit, we can see from many article pointing that gold have “bottom out” from downtrend. In fact, when we look at the long term secular trend, gold is still having its uptrend (as shown in the 2nd chart below).
Analysis of gold for immediate term: Bullish
- TA continue to point towards bullishness of gold; on track to retest recent high of 1,300 range
- USD continue to slide against major currencies (relationship between USD & Gold are inverse)
- Tension continue to rise around the world
- Interest rates continued to be stable
- For gold to break above 1.3k, big event has to happen (TA chart is supporting this with triple bottom)
Chart drawn long back showing the secular uptrend