I think we can safely assume the Brexit vote is going to fail. This should be bullish for stocks and bearish for the dollar. A falling dollar should be good for gold. However, with stocks and oil moving higher it’s likely to take some focus off gold.
I’m expecting the metals to be volatile for a couple of weeks as they build up the energy to break through the 200 week moving average. I do think gold will ultimately break through once the market recognizes the dollar is in trouble.
I see traders everywhere worrying about how the Brexit vote will effect gold. Folks, forget about the Brexit. By this time next week the Brexit will already be fading into memory and the market will go back to doing what it was doing before the vote.
Gold is rallying out of an intermediate cycle low. Gold has completed its bear market and is starting a new bull. Intermediate cycles in bull markets don’t top for at least 14-18 weeks. So quit worrying about a top in gold until August or September ad quit paying attention to the clueless analysts trying to tell you otherwise.
I think the next really good opportunity is going to come in the energy market. I expect oil will complete its daily cycle low late next week and then begin a new bullish leg up for both oil and energy related stocks.
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