Bears Take Control: Gold Breaks Below Key Support
After touching all-time highs near 4058, gold reversed sharply, signaling a possible shift in momentum.
Expert's Profile
Alex Demolitor
Helping investors find long and short fundamental value in the precious metals market.
Most recent content
Gold Tests Resistance — Is Another Breakout Coming?
After a strong run, gold is consolidating just below a critical resistance.
Gold Breaks New Ground — $4,000 Within Reach
After invalidating yesterday’s bearish push, gold has powered higher, setting another all-time high.
Gold Breaks Higher — Is $4,000 Within Reach?
After a strong bullish breakout above $3,893, gold is showing no signs of slowing.
Gold Stalls, Bears Eye Opportunity
Gold closed with another bullish candle, but heavy selling pressure at $3,870.55 kept prices from breaking higher.
Approach / Strategy
Looking at the Interconnectedness of Markets for the Medium-Term
Alex Demolitor analyzes the movements in the stock, commodity, bond, and FX markets to determine the likely direction of the precious metals. Financial markets are interconnected, and what occurs in one market often cascades across others. Furthermore, gold’s fundamental value is often determined by the performance of the U.S. dollar and real interest rates, which makes it essential to monitor these crosscurrents.
Alex’s investment horizon ranges from one to three months, as the technicals dominate in the short term, while the fundamentals are more potent over the medium term. In addition, specific price levels are not considered. Instead, the goal is to position for events when the risk-reward is attractive. Therefore, as the fundamentals change, the risk-reward changes, and whether or not to enter or exit a position changes as well. So, it’s an evolutionary process that includes continuously analyzing new data.
Full Bio
Alex Demolitor hails from Canada, and is a cross-asset strategist who has extensive macroeconomic experience. He has completed the Chartered Financial Analyst (CFA) program and specializes in predicting the fundamental events that will impact assets in the stock, commodity, bond, and FX markets.