Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
GOLD: after-breakout consolidation
Information is not investment advice
Fundamentally, we have all the factors pushing the gold price in the mid-term. There are infections out of control in the US – and that is not going to be sorted sooner than weeks from now. We have the US-China and the US-EU trade relations that are as complicated. Together, these factors are likely to bring the price of gold up to $1 850 by the middle of August.
Technically, however, gold is going through a phase of consolidation. It did break the mark of $1 800 last week, and now is in a rebound. Lower highs and horizontally stable lows suggest that bulls are just waiting for their turn to take over. Clear upward resistance is pointing higher. Therefore, expect some more sideways movement in the immediate short-term, and a continuation of the uptrend as the next stage.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?
First, "ETH merge" Google requests are on the rise. At the same time, "buy ETH" requests are at their two-year lows, which is quite a negative factor ahead of the vast update. The community either doesn’t believe in the success, or they are following the "buy the rumors – sell the news" rule and waiting for the massive dump after the merge.