China’s Yuan continued its plunge against the US Dollar after the latest Trump tariff tantrum. The trade war is hotting up and we can expect further Yuan weakness, fueling demand for Gold.
Spot Gold consolidation above $1500/ounce is a bullish sign, while a Trend Index trough above zero indicates strong buying pressure.
We maintain our bullish outlook for Gold, with a target of the 2012 high at $1800/ounce.
The All Ordinaries Gold Index surprised with a fall despite the weakening Aussie Dollar. Penetration of the rising trendline warns of a correction but the primary trend remains upward. A Trend Index trough that respects the zero line would confirm this.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.