Loading ...Fully wanted a bearish chart
To be clear I’m not a bear long term but I am still expecting gold to breakdown and HUI to make an Inverse H&S as it doesn’t have enough juice to push through major resistance. I think gold will go towards 1100-1140
Here is a gold weekly chart. Top line is cutting through bit but the backtest of rising support was a perfect hit.
Biggest reason I’m bearish short term. Channel or bull flag? I don’t know but has room to run.
Something to consider is that the dollar/PM relationship is not as ‘inverse’ as it has been. If the dollar rebounds up, aside from a continuing earnings recession, even more pressure will be put on the SM’s to fall in conjuction with over-extended valuations. I see the dollar and PM’s rallying or at least being supported together in a risk-off environment with PM’s winning the race longer term as faith in the effectiveness of CB action diminishes. Question is, will PM’s allow a material gentlemen’s entry – as a macro-view bull, I’m not counting on it.
You’re right about the relationship not being as strong and gold has been more of a safety play. But over the long run, major turning points in the USD coincide w turning points in gold. Will be interesting.
Great charts PK