Gold Short-term Channel & Long-Term vs M2 Velocity

in money •  7 years ago 

Gold has not been doing well over the last several days. However, it is still within the channel that has been established since mid-December 2017. A short-term break below the channel is possible, followed by a continuation of the rally to $1400.

gold channel.png

Remember to keep the long-term picture in mind: central banks around the world have printed trillions of paper currency, and the velocity of that currency is historically low. Once velocity picks up, inflation will emerge and lead to a significant increase in commodity prices, including gold.

M2 velocity.png

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Totally agree! However, my analysis shows that GLD might dip into a daily cycle low in the short term.

Agree, that is why I wrote that a short-term break below the channel is possible.

Very informative
Keep it up

Thanks

This post has received a 1.46 % upvote from @boomerang thanks to: @myfinanceteacher