As the Indian equity markets have been in a frenzy and global markets are also witnessing aggressive selloffs, it will be interesting to see if investors turn towards gold for a safe haven. Rise in gold prices can also be attributed to the depreciation of INR since they are inversely correlated. In our daily commodity report published on 7th February 2018 we can see how flawlessly on hourly scale prices are moving within the upward sloping channel.
Is it time to turn to Gold again?
Look at the below chart of Gold from “The Commodity waves short term update” a daily research report
Gold 60 mins chart:
Elliott Wave analysis:
Below had been published in today’s morning research report
Comex Gold has managed to protect its previous low of 1323 levels. As long as this level is intact trend remains positive.
As shown in daily chart, prices are near its channel resistance. Post making a high near 30800 levels prices are moving sideways. As long as 50 periods EMA is maintained at 29577 levels trend remains positive over medium term.
As shown on hourly charts, prices are hovering near its channel support trendline. It will be interesting to see if it manages to protect this level. Break of previous low of ….. levels can infuse selling pressure over short term which can take prices towards … levels or lower levels. Break above 30300 levels will ensure revival of up trend.
In short, Gold is impulsive. Break of the levels mentioned will provide trading opportunity.
There is a possibility that the asset which has been out of flavor for so long can start gaining attention as the global equity market turmoil starts. Is it time to switch the asset from Equity to Gold?
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