GOLD: Have we reached the end of the tether now?
Golds rise has come off the back of geopolitical tensions and Central Bank easing globally but, where is it headed next..?
Since the end of Q1 gold has risen roughly 15% currently sitting at 1487 at the time of writing. The FED and geopolitics have contributed to the majority of the gain but, are the FED’s “mid-cycle adjustments” and external risks about to start to clear this up? If the FED was to cut again at the end of the month then that would be 3 cuts in the “mid-cycle adjustment” and going off recent FED speak this could be the last. Recent developments in Brexit are looking very optimistic and now the UK PM JUST needs to get the deal through parliament, emphasis on the "JUST" there.
So, if external factors are starting to clear themselves up does this take the shine off gold? In my opinion, this does somewhat take some shine off Gold but I still see further upside for the shining yellow commodity. There have never been so many risks surrounding the global macro picture HK, Global Easing, China, Trade, in a world of so much uncertainty it's no surprise that investors and traders are seeking shelter in the safe haven.
Technically as well gold is approaching a critical point as we get close to the end of the ascending wedge formation on the daily chart, with some good horizontal and trend-line support seen at 1485. If 1485 breaks then this opens the door up to our next support seen at 1425, our upside projections are seen at 1525 and previous September highs at 1550....