Home
Register
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
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
» CCS.N0000 ( Ceylon Cold Stores)
» Sri Lanka plans to allow tourists from August, no mandatory quarantine
» When Will It Be Safe To Invest In The Stock Market Again?
» Dividend Announcements
» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්රතික්ෂේප කළ ගණිතඥයා
» SEYB.N0000 (Seylan Bank PLC)
» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
» The Korean Way !
» In the Meantime Within Our Shores!
» What is Known as Dementia?
» SRI LANKA TELECOM PLC (SLTL.N0000)
» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
» Equinox ( වසන්ත විෂුවය ) !
» COMB.N0000 (Commercial Bank of Ceylon PLC)
» REXP.N0000 (Richard Pieris Exports PLC)
» RICH.N0000 (Richard Pieris and Company PLC)
» Do You Have Computer Vision Syndrome?
» LAXAPANA BATTERIES PLC (LITE.N0000)
» What a Bank Run ?
» 104 Technical trading experiments by HUNTER
» GLAS.N0000 (Piramal Glass Ceylon PLC)
» Cboe Volatility Index
» AHPL.N0000
» TJL.N0000 (Tee Jey Lanka PLC.)
» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
» Bitcoin and Cryptocurrency
» CSD.N0000 (Seylan Developments PLC)
» PLC.N0000 (People's Leasing and Finance PLC)
» Bakery Products ?
» NTB.N0000 (Nations Trust Bank PLC)
» Going South
» When Seagulls Follow the Trawler
» Re-activating
» අපි තමයි හොඳටම කරේ !
» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
» SAMP.N0000 (Sampath Bank PLC)
» APLA.N0000 (ACL Plastics PLC)
» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
» Banks, Finance & Insurance Sector Chart
» VPEL.N0000 (Vallibel Power Erathna PLC)
» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
» WATA - Watawala
» KFP.N0000(Keels Food Products PLC)
» Capital Trust Broker in difficulty?
» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
» What Industry Would You Choose to Focus?
» Should I Stick Around, or Should I Follow Others' Lead?