Nascent Gold Bull Is Knocking At The Door

EDITOR NOTES: DBS Bank Strategist Benjamin Wong says a "nascent bull" is here in the gold market, meaning that we are very close to a gold bull market. FX Street reports that Wong notes, “Gold is quietly making a bullish inverse head-and-shoulders since June – thus the nascent gold bull is quietly knocking at the door. The neckline stands around $1,830 for that pattern to take off. A secondary confirmation probably requires gold to surmount and sustain over the weekly Ichimoku’ cloud fringe resistance at $1,873.” If gold prices do hit these numbers, the next range investors should look for to show gold is moving even higher is a price point between $1,930 and $1,980. With that price point versus where you can get non-Fungible gold is today, gold could provide some serious profits in the coming weeks and months in addition to being a great long-term store of value and wealth protection vehicle.

As Benjamin Wong, Strategist at DBS Bank, notes, XAU/USD’s technical chart shows the possibility of a near-term bullish inverse head-and-shoulders pattern, that requires a break over $1830 for validation. Once validated, gold would open up further upside.

The balance of risks appears to be siding with a nascent bull

“Gold is quietly making a bullish inverse head-and-shoulders since June – thus the nascent gold bull is quietly knocking at the door. The neckline stands around $1830, for that pattern to take off. A secondary confirmation probably requires gold to surmount and sustain over the weekly Ichimoku’ cloud fringe resistance at $1873. 

“Should the inverse head-and-shoulders pattern get validated, gold would target the upside into $1930, perhaps even $1980 (over the June highs). A break under $1720 would however nullify this potential pattern.”

See – Gold Price Forecast: XAU/USD to go on the topside once above $1813/42 – Commerzbank

Originally posted on FX Street.