Morning all.
Interesting to see $GOLD put in bit of a correction overnight and closed the Sunday night gap.
I was looking at the start of January run higher in Gold when the US-Iran tensions spiked and price did a move above $1,600. As that tension dissipated, Gold put in a retracement to the 61.8 fib of that move and consolidated for a while.
The Coronavirus outbreak has taken over as the next catalyst for Gold to move, not just because of the virus but also because of the anticipated response from central banks, and I’ve plotted the fib on the chart to show that a pullback to $1,600 would be quite ordinary if the current situation doesn’t escalate further in the meantime.
If Gold does come down then I’ll be looking at $GDX and $GDXJ for some more equity exposure, but if the rally resumes then hopefully $COPPER will head for test and break of the $2.50 area I highlighted recently and I can move the focus to building up some additional Copper related exposure.
Whichever happens I’ll be buying something!
I know my focus has moved to ‘Old Money’ a bit recently but that’s become the more interesting part of the market to me at the moment.
After the Golden Cross on $BTC (which I did post about) I’m just waiting to see if we do get a test of the 50 and possibly 200 day moving averages and I already have an extensive number of buy orders placed for that technical move if it comes. So it’s just waiting game on that side of things while we see if bulls or bears win the pushing contest.
Thanks for your time.
