Could we see Gold Sweep the Lows?
We have seen a sell off in gold last week where we saw bond yields rise to the top of the daily down trending channel but then reclined back down heading towards the bottom of the channel, sitting well below the 50ma.
The Dollar index in despite of high inflation rates have risen and broken through resistance during FOMC, we saw a high climatic action towards the end of the week on the Dollar index.
Gold has had a tremendous sell off, around 8% drop when impaled into the supply zone but couldn't break through, once rejected from the supply zone it dropped in heavy force, watching demand retreat back.
There was a demand zone on the daily which we can see break through given my opinion of gold to sweep the lows which I predicted in my case study, only issue was overlooking the supply zone ahead at that time of recording.
Looking ahead on the monthly and going back into historic results, we can see a crash in 2013, could we see the same crash in 2021?
Gold is used to hedge against inflation and with rising inflation in the background could we see a sweep of them lows where investors will be buying large amounts of gold being that value of gold could drop to around $1670-80 and is a great place to do business?
Or could we see a complete crumble in gold as investors are willing to take on more risk?
This was my daily prediction I recorded in April predicting gold in summer time.
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