While the crypto market is stagnant, there is very low volatility and nothing is happening at all, it makes sense to speculate in other assets. $BTC stupidly froze in one place.
Today we will look at gold.
3 months ago we posted analytics on this asset and now the price has reached the levels we expected. Which means it's time to update the forecast.
📈 As you know, gold is very strongly correlated with 10-year US bonds.
Such a high correlation there began immediately after the 2008 crisis (coincidence?) and according to all forecasts of analysts and large investment companies, 10-year yields will not go above 5.5%, which means the potential for gold to fall is very limited.
Now the yield on 10-year bonds is 4.74% and only +17% remains to reach the 5.5% mark.
In this case, gold has the potential to fall by another -7.5%, that is, in theory, the price of gold will find the bottom at around 1700-1750 points.
🕯 But what does the technical analysis say?
On the weekly timeframe, gold entered the oversold zone according to indicators. Historically, from such levels, this asset bounced upward.
On the daily timeframe the situation is even more interesting.
Gold has gone into a very oversold zone, and the last time the indicator had such values was 7 years ago!
Also, the price is at the lower border of the medium-term downward channel, the support level of 1831 points and the long-term moving average MA200w.
The technique suggests at least a technical rebound on which you can make money. In this case, the minimum growth target will be in the area of 1887-1900 points.
📊 Result:
The most liquid asset in the world is in a very strongly oversold zone, and if we are not at the bottom now, then the bottom is clearly very close.
For long-term purchases, you need to buy gold now at current levels and, if something happens, be ready to buy additional assets in the area of 1700-1750 points (potential drawdown of only -3.3%). It makes sense for owners of large deposits to purchase this asset for their portfolio. On Binance this asset has a ticker$PAXG
Also, owners of any deposits can speculate in gold with a risk profit of 1 to 4. For example, open a long position with leverage. In this case, the stop should be placed at 1790 (-1.65%) points, and the take profit in the area of 1887-1900 (+4.11%) points.
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