Gold shot up....

I normally restrict myself to 1 entry per week. Having more entries tends to drain my brain and less time for other matters on hand, like family time, especially when I am doing this on a weekend. 

However, a video I watched last night about gold plunged in China caught my attention, led me to check on the trend of gold.

Video: China’s Gold Prices Drop Sharply, Gold Stocks Crash, and Gold Shops Flee Overnight | Fake Gold

The video began with a plunge in gold price in China within a week, as a result burning the hands of many. It further narrated the unscrupulous gold retailers cheating consumers of the money through sales of fake gold as well as promise of safe keeping only to close down the outlet conning people of the money.

It stirred my curiosity on price of gold: what was my last stand on gold and how far it is from mt prediction? and has gold plunged as how the video described?

I checked up my past entries and noted my mention of gold was in Did the Israel-Hamas war any effect on the world? dated 14th October 2023. It was certainly quite some time ago.

I mentioned at the time that gold was in congestion and when break upward, I will see resistances at 1,985, 2,105 and 2,184.  

1,985. Should this be broken, it will head for 2,105 to 2,184. I based my highest resistance point at 61.8% projection; the 100% projection level was too far at that point of time.

Fig 1. Gold weekly chart

The chart did not really show a sizeable reversal, instead, it was a minor retreat after breaking through the Bollinger band the week before last.  At the beginning of this this week, it fell further before recovering and closed above the Bollinger band but fall short of the 127% projection of its medium and minor measurement.

With 2 resistances at the same level, it may be a tough nut to crack. However, gold seems to have a momentum upward, observing its MACD steep climb. 

I suspect it will head straight to its major 100% projection level, 2,527, which coincide with its 161.8% projection of medium and minor measurement.

There is still no signal of any potential correction. If it "reverses", I will see its first line of moving average support at 2,254.

It seems that we are going to have another round of inflation here as USD is getting stronger against SGD and gold is inflating against USD.

Good thing that crude oil may be coming down (need one more bar to confirm).