gold forecast , Are Hedge Funds Still Buying

gold forecast , Are Hedge Funds Still Buying

gold forecast , Are Hedge Funds Still Buying

 

gold forecast spiked higher on Friday as investors shed risky assets and moved their money into U.S. government instruments. The result was a drop by Treasury yields which made gold a more attractive investment. The catalyst behind the rally was a U.S. airstrike that killed a high ranking Iraqi military official

At 13:51 GMT, February Comex gold is trading $1548.60, up $20.50 or +1.35%

The rally could stall over the near-term if there isn’t a fast retaliation by Iran. most are expecting it so it's going to already be priced into the market. Earlier today, the market took out the September 24 top at $1549.90. subsequent objective is last year’s top or the September 4 high at $1571.70

Treasury Yields Driving Price Action

gold forecast Treasury yields sank Friday as investors fled for safer assets within the aftermath of a U.S. airstrike in Baghdad that killed Iran’s top military commander and escalated an already-tense power struggle between Washington and Tehran within the Middle East

gold forecast The yield on the benchmark 10-year Treasury note sank 5 basis points to 1.826% from highs around 1.9% within the previous session, while the speed on the 30-year bond fell an identical magnitude of two .286%

Gold doesn’t pay a dividend or interest but investors seem to love it when rates move toward 0%. It’s more of an edge adjustment

US Equity Markets Plunge

U.S. stock market index futures were sharply lower Friday after the U.S. confirmed the airstrike that killed Iran’s top military commander. Investors fled risky stocks in favor of gold

U.S. Economic Data

gold forecast Later today at 15:00 GMT, traders will get the chance to react to the ISM US Manufacturing PMI report. it's expected to return in at 49.0, slightly better than the previously released 48.1, but still below the key 50.0 level

The major report at 19:00 GMT is that the Federal Reserve System minutes from its December meeting. Investors are going to be trying to find clues a few possible rate cut in March. The economy might not need it, but the Fed may make the move as insurance against an economic disaster

Daily Forecast

gold forecast Remember the hedge funds are long gold for about two months. They built the elongated support base on the charts. the general public is chasing gold higher now and therefore the hedge funds could also be selling it to them. Guess who’s getting to be holding the bag at the top? The gold bugs who trade the headlines. Happy Speculating