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GOLD - The Beast Awakes after 6 Long Years Sleep.

Hello Guys

Hope you are doing great in your trading journey.

Today we will be discussing about the favourite commodity of the Indian household - GOLD.

It has been 8 long years since GOLD is having a downtime.

GOLD made an All time high of $1921.070 on Sept 2011 and then entered in a long term bear market with GOLD prices dropping to 45% of its original value falling to $1046.45 in Dec 2015.


Interesting, from Dec 2015 consolidation is seen in the GOLD prices with a consistent rise from $1045 to 1120$ to 1380$ in the last 6 Years. let’s look at this chart below :



Recently, after nearly 6 years of long term consolidation, GOLD price gave a major breakout on weekly charts which has attracted attention of the trading community. Finally after 6 years, it gave a weekly breakout by closing above this Supply Zone. To have a better understanding, let’s look at this chart below :



GOLD struggles all through the Trend line and suffers great resistance all along. Finally after 3 years, GOLD gave a weekly breakout by closing above this trendline and this could an indication

of something big building up – like mild waves before the Tsunami.

To have a better understanding, let’s look at this chart below :


I have shared my bullish views on GOLD multiple times on my twitter profile. Here is a screenshot and link of my recent tweet in 8 Feb 2019 where I predicted that 2019 will be the year of only 2 commodities – GOLD and Silver ( Breakout on Silver is still pending as of now. )


https://twitter.com/BnfScalper/status/1093888809727655937?s=20



Note: Do observe the coming Friday - 29th June, if GOLD prices closes above $1380- $1400 then this will be a mega breakout on the GOLD’s long term monthly chart.


Look at this chart, it shows the Next Reference zone/Targets for GOLD.



I strongly believe GOLD prices are moving towards $1483.70 in short term and $1585-1620 in medium term. Since this breakout came after long consolidation of 6 years ( 2013 -2019) , we can expect a fast and instant upward movement.


As you know, I am Price Action Trader. I track price and base my decisions on it mostly without caring much about fundamentals. But there are a few interesting facts which caught my attention and forced me to dig further. Here are some of them :


1 - First, all major Central bank across the globe are increasing their GOLD reserve, especially China and Russia.


* China’s central bank remained a GOLD buyer during May for a six straight month


* In 2018, central banks added an incredible 651.5 tonnes GOLD to their holdings, not only the biggest in 47 years but also the second highest annual total on record (only surpassed in 1967, when central bank GOLD reserves increased by 1,404 tonnes).


* On the domestic front, RBI increased its stash by about 42 tons last year, and after adding more this year, the country’s GOLD reserves now stand at a record high of almost 618 tons.


2 - Second, SPDR GOLD Trust ( GLD ) added 1.12 Million ounce ( 35 tonnes ) in a single day. This is the biggest 1day inflow since Feb 2009 we have seen.


You can refer the chart below to have a look at it :



I believe now you have a clearer picture of the situation and happening around GOLD.


Now come the most crucial question comes - How can you pull maximum benefit from this upcoming rally in GOLD ?


Here are a couple of ways I think you can use to take benefit of this upcoming rally :


1. Buy GOLD Futures on MCX 

2. Invest in GOLD Coin Scheme

3. Invest in GOLD Saving Scheme

4. Invest in GOLD Exchange Trade Fund ( ETF)

5. Buy Sovereign GOLD Bonds ( SGB )

6. Buy digital GOLD

7. Buy physical GOLD as jewellery and bricks.


I shall be writing another blog very soon where I will explain all the ways mentioned above along in detail with some secret tricks that could prove useful so that you can take maximum benefit of this opportunity.


I would like to highlight that GOLD is super bullish commodity asset right now and it’s long term trends are changing big time.


So, GOLD is no longer a dead commodity which people used to call it since last 6 years and the

beast is now alive.


Thank for taking out time to read my blog. I hope – it was helpful.


I wish you a great and profitable journey ahead.

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