That's why... https://www.bbc.com/news/world-us-canada-47036515 https://www.wsj.com/articles/u-s-au...-of-actions-against-chinas-huawei-11548711284 Gonna be a cold summer!
World Central banks bought more gold in January than they did in all of last year. Currently, and for the last several months, almost every dip has been bought. A favorable trend has formed to the upside. The real question is will it go on to break the $1400 level, which is very serious resistance. Only time will tell.
I think the tide is beginning to turn again, beginning to feel bullish, in actual fact this whole recent small pullback has not felt like it was bearish. Anyway because in a way I dislike trading gold as a trend trader, for me it is hard work because it seems to be too much a speculative beast I made the following decision... Where I trade on the ASX, I had been concentrating my portfolio on metals, so now I have diversified into other areas, healthcare, IT, financials....etc. But there is one stock here called Aurelia Metals which has a very low PE and is a diversified metals producer/explorer, but it's main commodity is Gold/Copper. I decided to double down on my position size and will use this as a proxy on my normal gold portfolio, in other words, not gonna trade gold per sec, just trade/hold Aurelia AMI. Currently it is outperforming nearly any other metal stock on ASX. https://www.barchart.com/stocks/quo...&sym=AMI.AX&grid=1&height=500&studyheight=100
Here's an instance currently where USD is dropping and gold is not rising. Many believe that gold is lockstep correlated, well it isn't so.
Newmont Mining rejects Barrick Gold's $US18 hostile takeover bid. New York | Newmont Mining rejected rival Barrick Gold's $US18 billion buyout offer but proposed a joint venture in Nevada instead, a deal worth billions that would create a major operator in the largest US gold-producing region. "Barrick's egocentric proposal is designed to transfer value from Newmont's shareholders to Barrick," Newmont chief executive Gary Goldberg said on Monday (Tuesday AEDT). For his part, Barrick CEO Mark Bristow said the JV proposal was "stale and convoluted" and that both companies' Nevada assets would be better run by a single company. "We know we can do that more efficiently than Newmont and that it will be worth a lot more to both Newmont and Barrick shareholders under that scenario," Bristow said. He did not directly respond to Newmont's rejection of the buyout offer. The proposed Barrick deal would combine two of the biggest gold producers in the world at a time when both companies are trying to bolster shrinking gold reserves to boost growth as well as take advantage of rising prices. Newmont said its Canadian rival's all-stock offer was not in the best interest of its shareholders as it was offered at a discount. Barrick's offer of 2.5694 common shares for each Newmont share was equivalent to about $US33 per share, which represented a discount of $US3.48 to Newmont's closing price on Feb. 22, the last trading day before the offer was announced. Newmont on Monday reiterated its plans to go ahead with its deal to buy smaller rival Goldcorp Inc, which it said is significantly more accretive to its shareholders compared with Barrick's proposal. "Barrick has described their proposal as an unprecedented value-creation opportunity, yet it is inferior to the Newmont-Goldcorp transaction," Goldberg said. Bristow "has yet to prove he can successfully manage" a global mining company, he added. Bristow joined Barrick two months ago, after it bought Africa-focused Randgold Resources. That deal set off a fresh wave of bids in the mining industry, including Newmont's offer for smaller miner Goldcorp, which put the Colorado-based firm on track to become the world's biggest gold producer, ahead of Barrick. A JV in Nevada; Newmont has 19 mines and processing facilities in Nevada, which are adjacent to Barrick's operations. The logic of combining the companies' Nevada assets seems clear to both sides, but the sticking point is control. Bristow in an interview last week said he is frustrated that Barrick has to "drive trucks past ... processing plants in Nevada because Gary won't share with me," calling it a waste of money that would be saved if the assets were combined. Under Newmont's JV proposal, Barrick would hold a 55 per cent stake in the new entity, while both companies would have equal representation in the management and technical committees to make operational and financial decisions. That proposal sets "unrealistic preconditions," Bristow said on Monday, saying that "experience has shown us that JVs only work well when the majority owner is also the operator." Neither side seems to agree on the full value of the Nevada assets. Newmont's JV proposal uses publicly available materials to estimate value, as neither side has sat down to formally hash out how a JV could work. Barrick's shares were up about 1 per cent at $C16.55 on the Toronto Stock Exchange. Newmont's shares rose less than 1 per cent to $US34.06 on the New York Stock Exchange. Reuters https://www.afr.com/business/mining...lds-us18-hostile-takeover-bid-20190305-h1bzje
Gold bounced of the $1285 level after hanging right around it for several days. A 50% retracement of the move from $1220 to $1350. We'll see if we get a retest to the $1350 level. Added some positions at the 50% retracement.
1. very very big picture. gold has risen from 240 to 1920. uptrend has been completed. price may break 1920 level centuries later, or never. 2. very big picture gold has been ranging (with closing wedge formation ) from 1050 to 1380 for 5 years. It will continue to range for many years / decades till the chart says otherwise 3. big picture gold has risen from 1170 to 1350. time to continue its upward journey or gold has fallen from 1350 to 1282. time to continue its downward journey whatever it is , it will be in the range mentioned above.