To The Moon

If you are an investor into precious metals, you would have noticed that Gold just has the breakout confirmed, this is from what I have seen from intraday as well as daily closing price.

Gold Saw New Highs Due To Breakout

At the time of this writing, gold price is trading at about $2,160.74, this is one of the all-time highs, which is slightly higher than the late-2023 high.

If we look at the 4-HR intraday chart, we could see that Gold price is trying to stay above that level, so far it has been able to do it, but with RSI in the overbought region, we could be seeing more buying, it might not stay at this high for long.

A confirmed breakout opens the door to higher prices, and since it was a breakout to new all-time highs, gold could move much higher in the medium term.

SPDR Gold Shares (GLD) MACD and Bull Power Is Present

If we look at the $SPDR Gold Shares(GLD)$ ETF, we could see that it has formed three daily closes at the top, these are needed to confirm a breakout and we saw more than that. The breakout was confirmed, and the implications are bullish.

It is true that gold price is extremely overbought, we are also seeing GLD ETF RSI is similarly overbought. This is same as what we see at the 2022 top, after that high, we saw gold price declined for hundreds of dollars.

If we look at other indicators for confirmation for GLD, we could see that MACD is suggesting that GLD is experiencing a breakout to the upside, and there is no sign of slowing down.

Similarly we are seeing Bull power build up, after the breakout. This might be something we should be looking at.

Will Gold Hold Its Previous Highs?

We might ask ourselves this question “Why is this rally pretty much invisible from the long-term point of view, and why are gold stocks so low compared to their own all-time (2011) high? “

We have the USD Index that is likely to move higher in the medium term, and we have stock market that is extremely overbought. If we all remember what happened to the prices of gold, silver, and mining stocks when stocks plunged in 2020 or 2008.

he USDX is close to its recent intraday lows as well as its 50-day moving average. It’s also close to the levels that stopped its decline during the August 2023 correction. It seems that it can turn up any day or hour now.

Stocks moved below their late-Feb high recently and while they are trying to get back above it, the fact that they finally did move below the said high already makes the current situation different.

Was that the final top for stocks? If so, it could have been the case that gold (and bitcoin, which soared recently as well) we pushed higher on the wave of the overall dovish and bullish sentiment.

Summary

As we are seeing stocks creating new highs over the last few days, Bitcoin has also soared recently, if this case remained for the medium term, we could see Gold pushed higher on the wave of the overall dovish and bullish sentiment.

Appreciate if you could share your thoughts in the comment section whether you think Gold would pushed higher for medium-term. Outlook for Gold would be bullish?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.