Where does gold go now?
With gold at record highs where is the precious metal likely to move next? IGTV caught up with Ron William, founder and technical analyst at RW Advisory.
SHe says prior patterns suggest we are at or near the peak, with a re-grouping, before another rise to yet another record high. What will drive it? Well, several potential factors could drive the dollar price up, but Goldman Sachs suggests that geopolitics may be the driver with several flashpoints around the world. We look at the price of gold in the context of recent records on several indices and also the new highs seen on bitcoin.
(AI Video Summary)
Market overview
The markets are currently at their highest point ever in many areas, including the S&P 500, Wall Street indices, major benchmarks in Europe, and the London markets. And it's not just stocks, both gold and Bitcoin are also reaching record highs. However, Ron William, a market expert, thinks that gold may experience a short-term dip because it is overbought. He predicts it could drop to around $2,100 to $2,000 before continuing its rise in the long term, potentially reaching targets above $2,400.
Economic factors affecting the markets
William also talks about the momentum trade in the markets and how the overall economic factors are impacting it. Right now, those factors are all over the place, and this could be a turning point for the market. He warns that there's a risk of increasing inflation and geopolitical uncertainty, which could trigger a market downturn. So, it's crucial to be prepared for potential risks and diversify your investments to protect yourself.
Gold and Bitcoin
Speaking of diversification, William mentions that both gold and Bitcoin are following similar paths. He brings up something called the "bold index," which could be a way to trade both of these assets in a diversified and leveraged manner. This offers a unique opportunity to potentially profit from the rise of both gold and Bitcoin.
Lastly, William talks about the potential for a market downturn and stresses the importance of technical analysis. By studying patterns and exhaustion points, investors can identify when the market is about to turn. He suggests looking for confirmation of a downward trend and considering trimming positions or using protective stops to reduce risks.
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