Owning physical Gold now is more critical than ever; Dec 11, 2020
Gold Price Forecast relative to
Long Term Monthly (LT-M) - Medium Term Weekly (MT-W) - Short Term Daily (ST-D) - and Hourly (not shown) data.
(Previous week in brackets)
|Au % Risk
Total allocation 55% (50%)
Owning physical Gold now is critical
11 December:: Gold rallied nicely from last but failed to close on a more positive note. Our weekly risk weight turned bullish whilst short term daily turned down. The multi year long term picture is a solid uptrend that hasn't showed any sign of bearish divergence in the long term tools. Besides the need to always hold physical gold in times of severe uncertainty, today's picture is confirming that historic principle. As Medium term Weewkly and Long term Monthly have not yet shown that critical bearish divergence signal, the technical confirmation is still leading and offers a low risk long term hold. No Change.
4 December:: As discussed last week Gold still looked very positive with bullish divergence between short/medium and Long term time frames. This is an unusual condition not seen very often and really opens the potential for a phenominal advance in coming months going well into Q1 2021. The Weekly medium term risk weight needs to turn positive first and it is theoretically possible that another attempt to manupulate Gold downward may take place. If that happens our risk weight is likely to show an even stronger bullish picture than last week. This is a matter of patience. We stay fully invested in Gold and have only added another 5% of total portfolio to Platinum exclusively which had one of the best weekly advances since 2008 and looks it will do catch up with gold. Precious metals are now 55% of total portfolio with a balanced slightly opportunistic distribution of 30% gold, 30% platinum and 40% silver.
Gold/Euro live price
11 December:: We repeat last week's comment. At the close of dec 11, the USD/EUR exchange rate is looking technically weaker for the USD, which can of course quickly turn short term on any 'traders' news. Gold is a long term hold for Euro based investors.
4 December:: The technical picture across our tools looks very similar to Gold/US$ and possibly a little stronger which could mean a pause in dollar currency weakness which dominated currency markets the past week. No change to remain fully invested in Gold for Euro based investors.
Gold/British Pound live price
11 December:: Gold looks a little stronger vs GBP than ag USD and EUR following renewed pressure Sterling pressure as a result of a possible No Deal Brexit the Aussie way. Gold remains a long term hold for UK tax based investors.
4 December:: As against US$ and Euro, Gold shows a similar pattern again and UK tax based investors should remain fully invested in Gold and with a similar precious metals distribution to balance risk and opportunity.