Gold Gold Daily Video, July 29, 2022

[Sive Morten]

Good morning,

Gold has completed the nearest 1770$ target. Today we watch for pullback either to 1747-1750$ or 1733-1735$ support area to consider long entry. Next upside target will be 1805$:

 

[gpeter991]

Sive, looking forward to Gold weekly analysis Can we still expect testing lows on monthly (1600-1650 levels)? - as you have pointed out when the reality bites the markets the money should outflow also from gold since market participants will need to cover? Or does rather the recent 1680 level constitute the new bottom on the way up mid-long term?

 

[Sive Morten]

Sive, looking forward to Gold weekly analysis Can we still expect testing lows on monthly (1600-1650 levels)? - as you have pointed out when the reality bites the markets the money should outflow also from gold since market participants will need to cover? Or does rather the recent 1680 level constitute the new bottom on the way up mid-long term?

Hi Pieter, spot on question. I'm tending to the latter rather than to the former. Major monthly OP is 1672, while lows are 1680. Mostly it is done. But not only technicals are the reason. If we're correct on our suspicions concerning "new-old" Fed policy, and looking what Biden does, I have a feeling that Democrats have decided to score a full ride while they are still at control, and and everything else can go to hell...

The two plans combined would cost taxpayers roughly $920 billion. CHIPS would cost nearly $250 billion and the Inflation Reduction Act would spend $670 billion total while raising certain taxes. Experts have also surmised that Biden’s $1.9 trillion “American Rescue” spending plan contributed to the current record-high inflation mentioned by the president.

New York Mayor: America is in a financial crisis unimaginable

Fed also hardly will sit on the hands. No more QT... Obviously we can't be sure for 100% of course, but, my opinion, that hardly we see 1600-1650$. Rate tightening stops, while inflation will go higher. This should be best combination for the gold market.

 

[gpeter991]

Cool! Thank you! I ll buy some physical gold along as well. Greetings to all of you guys!