Met a person from a Singapore team trading gold.

 I attended an open house of Singapore University of Technology and Design (SUTD) yesterday.  My son's diploma course is reaching completion, and it is time to again consider the next step in further study.

The university courses focus on strength in science and technology and most of the courses result in at least Bachelor of Science. 

The interesting part is I met a person there who is part of a team of people trading in gold, reason? 

The mentor of the team has multiple years of experience in trading gold, and he guides the team on their trading strategies.

This caught my attention, as gold has appeared on my radar recently when news of gold "crashing". Meeting this person seems to a sign for me to check it out.

My last entry on gold was Gold shot up.... dated 21st April 2024, close to 2 years ago. I was bullish on this counter at the time with estimated objective of 2,527. As gold was not really my interest, I just left it there and then.

It is indeed a surprise that it reached a peak of 5,586 before correcting on 24th January 2026. More than double of my origin target. Where will gold be heading after this correction?

Fig 1. Gold (GC=F) weekly chart

First off, the plunge was strong, a full 1,189 plunge, a drop of 21% in less than 2 weeks. No wonder there is so much yelling at the time, especially from China.

It was however, supported by its 8-week moving average and went on continuation thereafter. while the MACD is very high at a height of 529, there is even a gapped up this week indicating much momentum upward.

Further to that, its movement maintained below its Bollinger envelop, the increment is quite in control.

What is its weakness then?

It is fast reaching its short term 61.8% projection resistance of 5,277.97. It is also getting close to its longer term 61.8% projection of 5,442.51, follows by its 100% projection of 5,538.97. 

It is close to its previous high of 5,586, and the plunge on week o 24th to 31st January 2026 demonstrated a significant level of weakness. Its move after that is milder in comparison, even with its gap up this week. The gap might just be due to exhaustion.

I foresee some struggle for gold in the near future, especially between 5,442 to 5,539. However, I am yet to see any sign of reversal here. It may correct or congest and will go higher base on its present indication. Reason?

Its moving average alignment, which suggest an uptrend continuation.

What is the significance of gold other than an indication o inflation? 

In the past, USD was gold standard, which allow USD to be more stable and stronger. The weakness of this is limitation of its circulation. Things change when the tie was broken and USD floated.

As gold is still traded in USD, it shows weaker Dollar every time gold climbs higher. We should be seeing inflation in place for US of A. This may be made worse with Tariff in place. 

The question now is: Is inflation just a US problem or is it spreading out? 

I will have to check on GBP and EUD which will be done on my next entry.