Gold Rush May Continue But Not Hassle Free
Satendra Singh | Mar 01, 2020 10:47AM ET
On analysis of the movements of Gold Futures, in different time frames, I find that the sudden sell-off by Gold, seems to be only a temporary phenomenon while human psychology has been struggling.
Friday’s sudden sell-off in gold was accompanied with selling spree in equity markets due to sudden rush for margin calls for funds to hold positions in equity markets; which resulted in some selling pressure in safe haven. I find that the downward move in Gold futures is not an end of the current uptrend in Gold; as a wall between probabilities and possibilities in the spreading Coronavirus still seems to be very thin. The ‘Gold Rush’ may continue for some more time.
However, prevailing risk in global equity markets may find some support from the Fed, but a rate cut looks evident enough to encourage gold bugs to move upward on uptrend voyage which may have some hurdles ahead during the month of March 2020. Watch my upcoming video on gold; subscribe my YouTube channel ‘SS Analysis’.
Finally, I conclude that the bullish consolidation seen during the last hours on Friday may result in a strong reversal in Gold futures during the upcoming week.
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