Others Are Jumping Onto The Gold Bandwagon Too

in commodities •  9 months ago  (edited)


A little over a week ago, I talked about Gold through Newmont Mining,

Unusual Options Activity In Newmont Mining

Gold saw an increase of more than 2% last week and traded around its five-month high. Last week, U.S. nonfarm payrolls increased by 155,000 last month, but below the economists median forecast of 200,000 jobs. The jobless claims also fell less than expected last week. With the data announcement last week, one has to expect falling U.S. interest rates and a declining US dollar. A slowdown in global markets and uncertainty in the global markets is also favoring hard assets such as Gold.

This past Thursday, CNBC’s Jim Cramer said on his show, Mad Money that he was frustrated about the Federal Reserve’s policy decisions and recommended that investors buy into the bull market in gold. Craig Johnson, chief market technician at Piper Jaffray thinks Jim is right.

“Cramer’s spot on correct,” Johnson said on CNBC’s "Trading Nation" on Friday. “It looks like we’re putting in a bottom here and it looks like we’re going to see this maybe 9 to 10 percent higher to get back to the old highs.”

On the GLD gold index, a 10 percent rally would take the exchange-traded fund (ETF) to new 52-week highs. It would also mark its highest level since August 2016.

“From our perspective I think we could see some weakness in the dollar in here given that the [Federal Reserve] might be less hawkish going forward, and that might be really the underlying driver higher as to why we’ll see the gold prices go higher,” said Johnson.

Source

What we also have on the weekly chart is the 12 simple moving avg crossed over the 26 simple moving avg. signifying bullishness.

The chart suggests price is headed to at least the daily supply at $1330

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.


Published by Rolland Thomas
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I am actually research a list of gold-backed cryptocurrencies which I find an interesting crossover in our space. The fact that your ownership of gold can be cemented into the blockchain is attractive (as long as you trust those that hold the asset).

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If you can, get a hold of the real think, even silver coins will due in the coming years because I don't trust the gold ETFs.

Thank you Rolland for the post. All the financial newsletters I subscribe to including the gold/silver resource focused ones also see strength in gold for 2019. One analyst, a formal gold fund manager, put a $1500 target. Your $1330 shorter term target is a good start. I'm loaded up on my mining positions. With 1/3 the amount I was up $180K in 2016 by beginning of July, only to end the year up only $50K. I won't let this happen a second time. I've learned gold positions are best traded through intra trends of a bull market. Otherwise you simply ride the wave, which is quite volatile.

We have all been there...giving profits back to the Markets. One suggestion is to have a target price where you will take some profits off the table and just let the rest run / ride the wave.

That is pretty wise and I intend to do that. Greed is a hard thing to move past:)

Agree and we must remember that when we trade, we are only competing against ourselves.

Rolland- would you mind analyzing GRUB? It's taken a massive hit this year after starting out strong.

Grubhub was a first to market mover, paying early investors handsomely. I wrote a post about Grubhub indirectly some months ago.

https://steemit.com/money/@rollandthomas/buy-landcadia-holdings-not-grubhub

I most certainly will analyze GRUB, look out for it in a post in 2-3 days. If you have any others that you want me to look at as well, just let me know.

Thank you Rolland and I appreciate your willingness to take requests. In some sense, your like a talented DJ playing the market music:)

Thanks, but it actually helps me as well, like any skill / craft, it's all about repetition, so the more I analyze, the sharper my tool gets.

Great analysis. The next decade may be a wild ride for the dollar and most government backed currencies. In my humble opinion, accumulating gold, silver and crypto is a must to ride out what’s likely coming.