It’s time to send Lady Liberty back to France, as liberty may no longer exist in the United States of America.
- Higher yields and a stronger dollar failed to put pressure on gold markets.
- Demand for safe-haven assets increased, which was bullish for gold.
- The nearest significant resistance level for gold is located at $1965.
- Metals across the board are getting crushed momentarily
- Most consumers think the rising interest rates will force Inflation back down
Gold Gains Some Ground Ahead Of The Weekend
Gold is currently trying to settle back above the $1900 level despite a strong dollar and higher Treasury yields.
The U.S. Dollar Index has recently gained upside momentum and moved towards the resistance at 100.85, located near yearly highs at the 101 level. Meanwhile, the yield of 10-year Treasuries made another attempt to settle above its yearly highs near the 2.98% level.
Higher yields failed to pressure gold markets as demand for safe-haven assets increased. Yesterday’s major sell-off in the U.S. stock markets, which pushed S and P 500 below the 4400 level, indicated that traders remained nervous, which was bullish for gold.
VanEck Gold Miners ETF followed the general market sentiment and suffered a strong sell-off, which pushed it towards the $38 level. Today, VanEck Gold Miners ETF has a high probability of a major dump.
Gold has recently made several attempts to settle below the $1950 level, but these attempts yielded no results. Nevertheless, gold gets strong support in the $1935 – $1950 area, and it has an excellent chance to develop upside momentum after the recent pullback. However, this Monday morning’s dip puts an entirely different mindset behind us as investors.
If gold settles back above $1930, it will head towards the resistance level at $1965. A move above this level will push gold towards the resistance at $1975. Finally, if gold settles above the $1975 level, it will head towards the next resistance at $2000.
On the support side, the nearest support level for gold is located at $1910. If gold continues its’s decline below this level, it will head towards the next support level at the 50 EMA at $1925. A thriving support test at $1925 will push gold towards the support level at $1915.
Why are Precious Metals getting walloped this Morning 04/25/2022
Jerome Powell came out last Friday stating the fed’s next interest rate hike would be a 50 basis point hike and that for the year, they’d like to see it around 2.75% higher than where it started at. So the rationale that most investors are looking at is that if you tighten the money supply, Inflation will go down. This is a perfect scenario where your economics professor writes out a script; it does play out well. However, your economics teacher didn’t calculate the most incompetent administration in the history of our country.
Where’s that mythical Virus, Covid?
If you watch American news, you are well aware that the most significant issue at hand, and I mean that quite literally, Is the famous actor Will Smith slapping a fellow start at the awards show. China is forcing millions of its people into camps testing positive for covid and even killing their dogs and cats to ensure that it doesn’t continue to spread. The financial strain that a new strand would and I imagine most certainly is to come will make the trigger happy Fed fall once and for all as it will have strangled the world’s largest economy ever existed.
Should I wait to Buy Metals?
Not, the financial markets are so overwhelmed now that they’re not even able to process exactly what’s going on at the moment. The supply chain we haven’t touched on yet is getting tighter than it was when covid first hit in March of 2020. What usually takes us three days to get in, we were just told, would take over four weeks. Prices are lower, demand is higher, the world’s yield curve is inverted (historically this has led to a massive recession in years prior), and we’re still on the brink of another world war. If you’ve been buying gold or debating on buying gold, do it now. The best moments in life don’t come all too often, so take full advantage of them when they do!
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