The Gold price has already put many traders to the test. Just recently, a sideways movement so feared by active traders had formed. This tapered off into a flag. It was not a question of whether a breakout would happen, but when. There are only two questions about flag formations: When and where? Everyone was aware that the eruption would be violent. The energy accumulates in the market and then the volcano erupts. Whereby the break-out in this case happened only by chance on the upper side. This can just as well be done on the bottom side. Technically speaking, we have a double eruption in the Gold price. Once out of the triangle formation – and then the last high at USD 1,749 was also broken.
Asia loves Gold
There’s always been something magical about Gold. It is durable, does not rust and everyone gets a different expression when holding a bar in their hand. It is magical and simply beautiful to look at. Some investors make the positive qualities of Gold their own. It is the charisma and the enduring value.
There is only one thing that is disturbing. The price of Gold has risen sharply. It is statistically proven that outbreaks in the price of Gold have their origin mostly in Asia. Asians love the yellow metal. It is also no secret that the price of Gold always rises in spring, because a part of the 1.4 billion Indians marry and as a dowry Gold is always given. The same applies to the Chinese recently. If a few central banks are now added, the remaining momentum to drive the price of Gold will be created. It is not for nothing that people say: Gold is owned and not sold. In any case, the price of Gold was lifted over the weekend in Asia with the statements of Jerome Powell. All relevant resistance has been broken with lasting effect.
Now everyone has to look very far back in the chart to find the last high. This brings us back to the patience that a trader or investor must have. The only advantage is that Gold does not have to endure management, orders, tax increases etc… The price of Gold is like an oak tree: it grows slowly but steadily and stands strong in the market. Now in the chart (see below) the view goes to the left and the time setting must be changed to find the next resistances in the past. The good news for all Gold owners: There are no more significant and extremely hard hurdles up to USD 1,919. Those who want to know exactly: perhaps the USD 1,797 mark is still a chart resistance. But if the Gold price goes into this region, then this resistance will probably also be taken quickly.
Gold price: Inflation is rolling
Currently, unprecedented trillions of Euros, Dollars and Yens are being pumped into the markets. A mega inflation is waiting for us. This is not a conspiracy theory, but a simple consequence of the immense money printing of the central banks. It will therefore be important to secure your assets in stable values. Real estate is one thing. Gold is the other. Anyone who has owned Gold historically has never been poor. You can’t say that about stocks. The price of Gold will probably continue to rise and even surpass the last all-time high. Maybe not immediately, but it will happen. But before it does, it will test our patience a little.
The analyses shown here do not constitute investment advice and are therefore not a recommendation to buy or sell a security, futures contract or other financial instrument. Past performance is no guarantee of future results. The analyses provided are for information purposes only and cannot replace an individual consultation. Any liability for direct or indirect consequences of these suggestions is therefore excluded.