The Gold price has had a nice run over the last couple of weeks since it Sprang Upwards with Fresh Momentum after taking out its previous All-Time-High. I've been watching with great interest to see how strong the rally would be and I have been looking for signs that might indicate how far it might reach to. Today has been an interesting day for a couple of reasons but on the chart I do now see something that might be significant.
Source
Now admittedly, the above chart is only a 1 Hourly chart so these are pretty soft short timeframe signals but that doesn't mean they should be ignored. Yesterday the price had run up to touch the $3,700 USD level via what I'm calling a "Soft Kiss" before pulling back slightly. That's not really a big deal in isolation but a short time later it went through $3,700 and then had a sharp reversal. Now again a day later there was another attempt getting through and an even sharper reversal. The reason I call them sharp is because remember - this is a 1 Hour chart so all the action in those big red candles has happened within the space of 60 minutes.
From a Technical Analysis perspective big red Hammer Candlesticks like these can be interpreted as being Bearish but there was also a fundamental reason why the 2nd reversal was so sharp - The US Federal Reserve announced a 0.25% Interest Rate Cut. This was largely expected by the market so that 2nd red candle could be a "Sell the News" type of move or it might also be in reaction to some of the comments that were made by Chairman Powell. Regardless, I think it was more of a news driven move so we aren't purely looking at TA for that one.
For me, I am not too concerned and I remain optimistically bullish on Precious Metals because nothing has really changed in my outlook. However I know prices can move in fits and starts so after a good little run over the last 2 weeks it would not surprise me to see $3,700 emerging as a stubborn short term resistance level and maybe it'll keep a lid on Gold for a couple of weeks. It will be interesting to see.
I see gold hitting 4K by May.
I think it might be earlier. My base case is about Dec-Jan.
With the rate cuts that’s not going to happen. But I guess we will see
I think this will be consolidation for a few weeks before resuming the trend unless someone drops another political or economic bomb before then. I've even stopped by a new local coin shop to pick up several ounces of silver in the dip.
"A price dip is a terrible thing to miss."
!PIMP
Stack on. Wish I had a single LCS I could stop by. Nearest is over 2 hours drive away.
$3,700 looks like it’s shaping up to be the real test for gold either a solid resistance or the springboard for the next leg up.
Not a gold holder but I find this interesting, thanks for sharing
Gold, Gold, Gold!!! valuable.. inflation hedge.. SHINY!!
Yea the fed rate cut surely made that red candle even though if was highly expected