Mid-week greetings, I hope you
are using the FREE and very valuable
information that is posted here on Mokarimakka. So what news do I
bring on this post? The Ukrainian situation, (which I will not labor on
because the detail has been covered on a previous post), is having an effect on
the price of Gold. Uncertainty in the
global markets steer investors (and I mean large scale) towards ‘safe-haven
investments’ and there is nowhere safer than Gold! My assertion is supported here in a Newsledge article Gold Price Reaction
I have re-visited the Gold weekly price charts and
noticed (JARGON ALERT) that 3 x Doji Candlesticks have formed………. The English translation of that is that
the battle between the Bulls & Bears is being held at a stalemate, neither
can force the price higher or lower; this means that when there is eventually a
‘Breakout’ the price has a lot of pressure behind it forcing it in which ever
direction it goes. That’s great,
but how can we predict if at all; which direction the price will go? We must look at other contributing
factors. Firstly, we already know
that the ‘trend’ for Gold was a
bullish trend, secondly, we know that Gold
is advancing from a strong ‘double-bottom’ formation and thirdly, international
politics is having an affect on the global markets, and its this final point I
want to labor.
Understandably you may be questioning the above
paragraph and it’s correlation to the title of this post? You must understand
that prices are organic and not necessarily rational. The price pattern I presented on the post on Feb 12,
indicated the beginning of a bull market with some nice gains to be made. I am pleased to report that, as
predicted, the price action is doing what I expected it to do, until now! Here is a screenshot of the
aforementioned 3 x Doji Candlesticks.
Should Gold
investors be worried?..... Long term? No. There may well be a short term pull
back as investors procrastinate on where to place their investments but nothing
that will stall the ‘longer term Gold bull
market.
I said above that prices were organic and affect by
the most obscure and sometimes imperceptibly unrelated factors, but this on is
important……… the price of the U.S Dollar!... we’ve been here before. I’m going to do my research first but
just as a starter for 10, you may or may not have noticed the U.S Dollar is
weakening against Sterling, today’s exchange rate is $1.67 - £1. Check out this article which exposes
that China is dumping its reserves of the U.S Dollar China Dumps the Dollar I
cannot stress how big a deal this is! I will post an update when I have done my
research.
Mokarimakka? Yes!
'...The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty'
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