Gold: Core long, buy dips
Like many long-term financial market professionals, my confidence in the fiat system is so strong that I always have a core long position in Gold and Silver bullion!! It’s a matter of time before the day of reckoning comes.
Technically speaking, the daily chart has now formed a very strong base near $1350-$1375 and looks to be preparing itself for a powerful bull rally. Any dips should now be seen as buying opportunities.
Intermediate resistance around $1560 will be defended but I believe this will only be a temporary slowdown. The price is severely undervalued in my biased opinion and as tensions in the Gulf continue to ratchet up, I’m expecting some impulsive moves higher towards $1800.
On the currency side I am expecting to see EUR/USD start a strong rally which should see us testing 1.20 in Q1 2020. I have started with a small long position already but I feel the timing might be a fraction early on this one so I’m trading cautiously and waiting for the ‘unexplained momentum’ which is usually the harbinger of something much bigger.