Gold - favourable environment in uncertain world ($1320/25 and $1346.40 in play 2Q19)
- Gold is the main beneficiary of the current path of softening tone from the world's most imminent central banks (ECB 7.03, Fed 20.03, RBA, BOC, PBOC, etc). - Liquidity is one of the factors supporting gold. The relaunch of TLTRO in Europe and the ending of QT in the US. - The final stage of the business cycle and slowing world economy is making gold attractive in terms of allocation a bit of assets (10%-15%) during next 4-6 quarters getting good average price. - Although gold isn't pretty cheap (at least inexpensive or smth equal to "hold") after 9.4% rally during last six months and 2.6% ytd it still has potential for rebound towards $1320/25, $1346.40 or even $1355/65 this year in case of more prominent debate on rate cut in Europe or the US. - Any profit taking in gold could be limited by support at $1283 or $1276 and weakness below $1300 seems to be a buying opportunity for short-term and mid-term speculative horizon. Bull case is intact until gold prices trade above EMA(200) at 1270$. - $1250 and lower looks like "cheap" gold in terms of long-term investments.
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