How we will play a gold's slump if it occurres

6 de fev.

Earlier this year, we reiterated our long-term bullish view on gold with a price target of $2,300 per troy ounce. We continue to hold this view; nevertheless, in the short-term and medium-term, it is increasingly likely that we will see a significant pullback in the price, with gold falling below $2,000. As we described previously, we do not intend to sell our holdings. Instead, we plan to use this opportunity to speculate on gold (aiming to get our hands on more of it), utilizing either a dual currency deposit or a different structured product (once the volatility picks up and gold falls significantly).

Illustration 1.01

The gold’s MACD is approaching the midpoint. If it breaks below zero, it will bolster a bearish case in the short term.

Illustration 1.02

The picture above shows the sloping support for gold. If it is broken to the downside, it will be slightly bearish.

Technical analysis
Daily = Neutral
Weekly = Bullish

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.