The Investor Sentiment - Equity and investments forum for Sri Lankans

Join the forum, it's quick and easy

The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to contact.lankaninvestor@gmail.com if you face any technical difficulties when posting
Search
Display results as :
Advanced Search
Latest topics
CSE NEWS+ 2022Thu May 26, 2022 5:40 pmruwan326
Will CSE close for long period?Mon Apr 18, 2022 11:52 amHUNTER
Margin Trading Facility Fri Feb 18, 2022 12:02 pmpjrngroup
Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Go down
nihal123
nihal123
Top contributor
Top contributor
Posts : 6327
Join date : 2014-02-24
Age : 56
Location : Waga

Gold Price Forecast: Will The Brexit Sustain Higher Gold Prices? Empty Gold Price Forecast: Will The Brexit Sustain Higher Gold Prices?

Mon Jun 27, 2016 2:23 am
Britain shocked the world by voting to leave the EU. It will take several weeks and months to form an exit strategy; as a global recession is guaranteed. The people of the world are fed up with status quo politicians…and hunger for change. Gold prices should thrive in this troubling environment. It's only a matter of time before there is more global money printing.

Negative Factors

Precious metals rallied sharply on the Brexit vote, but there are negative factors developing to consider. Commercial hedgers (smart money) have increased their short positions to record levels in commodities such as gold, sugar, and agriculture. To me, this suggests the potential for a quick wave of deflation.

Both junior and senior gold miners were up significantly on Friday, but neither closed above their key reversal days established on June 16th. Understandably, a difficult task while US stocks were down over 3% on average.

There was substantial Selling on Strength (SOS) numbers in GDX for Friday (see charts below). These figures pop-up around significant tops in gold and miners. It is likely this is related to the global selloff. However, until miners close above the outlined levels, I remain somewhat skeptical.

Gold and the US Dollar were up significantly on Friday. Though they occasionally rise in tandem, I'm more inclined to believe that one of them is being disingenuous. I'm interested to see if they decouple next week -- and one stops rising. The dollar is traditionally viewed as a safe haven.

Monday Trading

Whenever a price shock like this occurs on a Friday, there is always the potential for continued selling come Monday morning from panicked investors worried sick over the weekend. Moreover, margin calls will exacerbate selling. After the contagion ends, a temporary rally will ensue that will likely last a few days. Once complete, we’ll assess the structure to plot a forecast.

US Dollar Weekly Chart

The dollar ended the week positive with a close just above the 50-week EMA. It will take breaking above the dashed trend line to make another run at the 100 level again.

see more

http://news.gold-eagle.com/article/gold-price-forecast-will-brexit-sustain-higher-gold-prices/284
Back to top
Permissions in this forum:
You cannot reply to topics in this forum