Gold set for best week in more than 3 months on stimulus bets
· Gold was headed on Friday for its biggest weekly gain in more than three months as it held firm near a nine-year high, benefiting from a weak dollar and inflation expectations due to stimulus for virus-battered economies.
· Silver eyed its best week since 1987, with additional impetus coming from bets for a revival in industrial activity.
· Spot gold was up 0.3% at $1,893.21 per ounce by 0739 GMT, having hit its highest since September 2011 at $1,897.16 on Thursday.
· Prices have risen more than 4% this week, putting gold on course for its longest winning streak since late 2011.
· Gold tends to benefit from widespread stimulus measures from central banks as it is perceived as a hedge against inflation and currency debasement.
· Rising Sino-U.S. tensions also prompted investors to seek safety in bullion. China ordered the United States to shut its Chengdu consulate in retaliation for the closure of its consulate in Texas.
Further helping gold, the dollar index held near a two-year low.
· U.S. gold futures rose 0.2% to $1,893.60 per ounce.
· Spot gold may retest a support at $1,880 per ounce, Reuters technical analyst Wang Tao said.
· Silver, which fell 0.4% to $22.63 per ounce, was up more than 17% for the week.
· Platinum rose 0.3% to $907.88 and palladium gained 0.3% to $2,131.34.
· Gold Price Forecast – Gold Markets Continue Ascent
The gold markets have rallied significantly during the trading session on Thursday, as we continue to race towards in $1900 level.
Gold markets continue to rally significantly during the trading session on Thursday, as we are approaching the $1900 level. That is a large, round, psychologically significant figure that people will be paying attention to, and therefore I think it should create some type of reaction. With that being the case I like the idea of buying pullbacks and clearly, we cannot be sellers of gold as it is one of the strongest markets out there. With the Federal Reserve looking to crush the US dollar one way or another, it is a difficult proposition to expect gold to break down significantly. However, markets do not move in one direction forever, so I think it is only a matter of time before we get a value trade.
The $1850 level begins a significant area of interest for me, that extends down to the $1800 level. We may have to touch the $1900 level before we get that pullback, but ultimately this is a market that will eventually have to pull back in order to find buyers. Eventually we will see the pullback that offers value, but until then all you can do is sit here and wait for some type of value that you can take advantage of. We have gotten a bit parabolic, so do not be surprised at all if this market pulls back rather rapidly. The GVX, or gold volatility index, is starting to rise, so we could see a bit of a significant move to the downside. This is not a shorting opportunity; this will simply offer value that you can take advantage of when it happens.
· Gold Still Bullish, Took out Exhaustion
On a macro basis: I cautioned on 8/16/18 the break back above $1,179.7-$1,183.7 warned of renewed strength. We have seen $704.2 of this. The break above $1,347.0 projects this upward $80 minimum, $320 (+) maximum. We have attained $540.9 of this so far. On 4/2 we left a bullish reversal below that warned of continued strength. We have seen $269.2 so far. We held a lower timeframe exhaustion at 18642-784 with a $1,866.8 high and rolled over $20.7 before short covering back up to take it out on Globex. The next macro exhaustion is much higher at $2,074.5-93.2.
On a shorter-term basis: The decent trade above $1,747.9-48.1 projected this upward $26 minimum, $74 (+) maximum. We have attained $139.8 of this. The decent penetration above $1,809.5 (-1 tic per/hour) projects this upward $16 (+). We have attained $78.4 so far. I noted in the Post Market Synopsis that we broke above a minor formation yesterday at $1,862.2 (-3 tics per/hour) that projects this upward $20 (+)—we have seen $25.7 of this. A break back below where it comes in at $1,855.4 (-3 tics per/hour starting at 8:20am) should bring in decent pressure. We are called $16 higher as of 5:31am.
Reference: Kitco, FXEmpire
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