Gold is making a strong comeback wave since Friday night after a sharp correction from $3707 down to $3627/ounce following the FED meeting. As I mentioned earlier, after the FED’s rate cut, Gold has confirmed a long-term bullish trend, and in the short term, there will be correction waves to build a stronger foundation for the long-term uptrend.
And last Friday, the SPDR fund made an extremely powerful move by purchasing 18.9 tons of Gold in just one day. This is a staggering number in recent years, further strengthening the outlook for Gold’s bullish trend.
In addition, this morning Donald Trump has sparked a “blame game” against the Democrats in the budget deal battle. If no progress is made in these discussions, the U.S. government may have to shut down for a period, forcing hundreds of thousands of employees to work without pay.
It’s only the beginning of the week, yet there are already plenty of news and signals showing that Gold is about to have a massive bullish run. Therefore, last weekend’s correction down to $3627 was just a trap set to shake out the market, and now is the real time for the rally towards $4000/ounce this year.
Technical Analysis:
In the short term, Gold may slightly correct back to the Fibonacci retracement zone of 0.5 – 0.618 around $3664 – $3671/ounce before bouncing back to retest the previous high of $3707/ounce. If Gold can break out above the previous high of $3707, it could advance to the $3718 – $3720/ounce zone today.
Trí Hùng
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