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Gold Chart Analysis





CNBC report and quote "The procedure, one of the largest of its kind, was expected to complete in 2020. Cold War fears that the gold could fall into Soviet hands was just one of the reasons the precious metal was stored overseas. The gold stored in Paris was held to be converted into francs in the case of an emergency but now both countries share the same currency." 

There is an unname source quote "Some have speculated Germany wants the gold close at hand should it be needed to back a new deutsche mark in the event of a breakup of the EU and the collapse of the euro. As Handelsblatt Global explains, gold serves as a shield against a currency crisis."  


From 25 August 2017 Chart, I had noticed a nice setup for gold trade. It had broke out from the blue color downtrend line drawn connecting 2011 high to 2016 high where President trump has won Presidential Election in Nov 2016 which had sent gold notching to 52 month high (1 year high) since 2015 trading at 1380 USD. 

After touching 1380 USD Gold scaling from 2016 low is registering 31.5%, had retest 1150 as support which work out to be around 17% correction but still up 9.5% from Jan 2016 low 1050. 

As price of gold is highly violatile due to its nature influencing by performance of US dollar, geo-political tension in middle east and the korean peninsula as a safe haven trade, hedge against inflationary pressure, real interest rate hike and possibly a war that could drive up and down gold price. Gold is a commodities which is price in US dollar denomination hence it is inversely related to the US dollar performance.   

Base on technical analysis (TA)   I had observed Gold had displayed a big possible rounding bottom chart pattern not illustrated, possible cup and handle chart pattern drawn green line. 
  
What chart pattern is confirm is a small green color rounding bottom is form. an inverted head and shoulder chart pattern using blue color downtrend line as a guide not drawn. my realistic target for gold which i think a bigger rounding chart formation should be at the price range of 1500 to 1600 USD. 

Update on SPDR Gold ETF Chart 5.3.19


  
Update on SPDR Gold ETF Chart 5.3.19 With Technical Analysis












Based on above Chart Technical Analysis, i strongly believe by one of the top technical analysis chartist Donovan Ang whose call on gold price to reach 2000 USD as the realistic target.

Bullish chart formation is observed at this stage, long term downtrend line has seen price break out, potential forming a large rounding bottom drawn in orange and green color trendline, price also oscilliate between the upper and lower price channel. 

Current immediate resistance to look out for is 143 and 165 USD price level before any attempt to challenge all time high of 187 USD seen in year 2011. 





Disclaimer: All news, information and charts shared is purely by my research and personal views only. This is not a trading recommendation or advice but on the basis of sharing information and educating the investment community. Different traders and investors adopt different trading strategies and risk management approach hence if in doubt please approach or seek clarifications with your Financial Adviser, Broker and Banker.

2 comments:

  1. Hi Clarence, looking at the last gold chart.. maybe 1800 is a possibility too referenving the 1st rounding bottom from 1000 to 1400 and with another 400 from 1400, 1800? thanks !

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    1. thank u irene for your views and opinions. will provide an update on gold once my conservative target reach.

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