Name: Why Gold Prices Might Be Poised for a Big Move Higher
Uploaded: 2020-03-12T23:20:55.000Z
Duration: 3 min 38 s
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The Fed's decision is really the key driver off markets today.

We do have a risk asset rally on her hands.

If we take a look at the influence on the futures market, we're going to see that it's all about the weak dollar.

That, of course, on the Fed surprising dovishness, or at least the way the markets are taking it right now take a look at the S and P 500 e minis up six cents of 1% off the highs.

But nonetheless, for 1/4 day in a row, crude oil up 5.4% surging another risk ass at less liquid.

This tells you invested a really leaning toward risk the best day of the year and gold futures off 3.3%.

The best day since June 26 of 2016 or 24th and 2060 nations say we had that big Brexit sell up investors seeking a haven.

Then right now they're seeking potentially a hedge against inflation.

If the dove are the Fed does go even more dovish than expected.

Now all of this, of course you can see weighing on that dollar, and we are potentially seeing an interesting shift for this chart Now, right now, support is holding.

It's a two year chart of the dollar index.

The dollar index holding that 200 day moving average over the last year.

This range of volatility right now testing down onto the 200 day moving average, breaking out of a range it's holding on.

But it does appear to be on the cusp of a breakdown.

If it does break down, you could see it go anywhere to 94 92 maybe even 90.

That would potentially Dr Gold and the other commodities and risk assets higher.

To talk more about this, I'd like to bring in John Broke Wolfe Research.

And what do you think of that dollar charge?

You think that the dollar can hold in, or do you think we're going to break down?

We think that was gonna weaken way monitor.

About 30 currency parents and 26 of 30 on weakening.

Sort of across the board is gonna break so one great way to play.

And I just wanted to give you a little bit of, ah, applause here because you sent this charge me yesterday.

Before that break out, even a blind squirrel finds a nut once in a while.

We like the break out here, and we realize it's run a lot on a near term basis.

That probably is overbought, but we would use any pull back to the breakout level to bind.

The August contract of 14 51 is a pretty decent target.

Okay, so that's where you would be looking to go along on those August gold futures.

And now let's take another look at a long term chart of Gold Spot.

And that really is an impressive range to possibly produce a huge breakout.

Yes, so we actually like this one a lot better.

So this has gone sideways for six years from the spring of 2013 and it's right up into the top of the range, which is roughly 1400.

We think this is a big bass and we think upon the breakout gold's gonna have in us get enough gas in the tank.

Sorry for the mixed metaphor to make a new all time high.

We really are very positive on the set up here for gold, where big bases are sort of our raison de tre, and this one has really set up to do something very powerful.

Okay, so you think that gold is gonna make a new nominal high?

And I know that technicians typically don't talk about the what?

Does this just because that huge move higher out of the financial crisis?

Of course, that was driven by the feds Accommodative policy.

Do you think that this base breaking out to the upside is a sign of it?

Or do you think it's more similar to what we saw at the end of the nineties?

I'm gonna beg off your question only because I think the narrative will follow, Right?

Nice moves first is Paul Tudor Jones told technician Thanks.

Price moves first and then the narrative follows.

It could be that all interest rates are gonna be either nearer to zero or negative as we're seeing in for many central banks, or it could be a weakening dollar.

It's it's immaterial to me why it gets there.

But the setup is very important, and we've done some long term work for this relative to the D.

X Y, which is the dollar spot index and is that weakens?

 It's very it's a very important import to this, the work higher. 