XAU/USD signals: Global fear will raise gold to $ 1,550 in the short term

The ghost of inflation travels the world, the price of gold begins to discount a rise that could be located in the area of ​​$ 1,550 an ounce in coming months. The purchase volume of gold in the markets has been rising discreetly in the last year, there is a confirmed purchase signal that will undoubtedly accelerate the price increase in coming weeks.

The bullish cycle of gold, in monthly charts, is maintained. The formation of the Elliot Wave is still valid and goes to point 3, after point 1, in the graph, showed prices close to 2,000 dollars at the end of 2010, after the banking crisis of 2018. The downward trend that It developed, as a secondary trend, took prices for more than four years to minimums below $ 1,000 (Point 2 in the chart), after confirming the end of the quantitative easing program of the Federal Reserve to rescue the banks in crisis.

The fears have resurged, although gold has not had a spectacular rise in recent periods, the rise continues slowly and attracting more and more buyers, from governments, large banking institutions and speculators, this will attract the rest of the market, which he is nervous after the strong fall of the values ​​in stock exchanges of the past week, and of investors who prefer to stay mixed in criptomonedas, metals and other raw materials, by the fears of inflation. The volume of rise is accompanied by an increase in buyers and the lack of sellers, the "bears" do not appear.

Gold will continue its rise in future sessions, then in the long-term chart, the "golden cross" is produced, a clear signal of purchase (At point A), which is accompanied by a high volume, as shown point B, during the last two years. Gold will attack the $ 1,420 resistance, which is weak and will be lowered in future sessions. The target price is located in the area of ​​1,550 dollars in the short term. In the long term, gold will continue to rise, since its prices are attractive and the market is changing to the position of "staying long in gold", following the primary trend and continuing the consolidation of the Elliot Wave, we could see at the end of the year or the first quarter of 2019, the gold quoting between 2,500 and 2,700 dollars, which means that in 2018 there will be strong movements and much turbulence in the stock and debt markets, in addition to a lot of volatility in the markets of raw material.

Review oursuccessful forecast from a year ago for this market.

Reference prices: Platform WEX.nz

Forecast date: February 12, 2018

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