Gold investment: add 34%! Bridgewater Gold ETF holdings more than $900 million! A long-term bullish trend for gold?

Spot gold held firm on Thursday, holding steady above $1930 as it tried to recover from the turmoil of the previous two days, while silver rose as much as 2 per cent above $26.

Gold, which has fluctuated wildly over the past two days, plunged and surged yesterday before closing almost flat, reversing a three-day losing streak.

For now, the dollar’s defensive position also strengthens gold’s position. The dollar retreated from a one-week high on Wednesday as political debate over the U.S. economic stimulus package took a breather from its recent rally.

President Donald Trump accused Democratic lawmakers on Wednesday of being reluctant to negotiate a bailout. The top Republican and Democratic negotiators blamed each other for the impasse.

The impact of the coVID-19 pandemic has been particularly severe in the United States, where more people have died from the pandemic than in any other country.

Moreover, as the US election approaches, the uncertainty becomes more apparent. The U.S. election campaign looks set to intensify after Democratic presidential candidate Joe Biden chose Senator Kamala Harris as his vice presidential candidate.

Mr Trump said on Wednesday that the biggest problem in the election would be Democrats, not China, Russia and Iran.

“This is going to be the biggest fraud in the history of elections,” Mr Trump said at a news conference. The biggest problem will be the Democrats, not China, Russia and Iran.”

The move comes after U.S. intelligence agencies accused Moscow, Beijing and Tehran of trying to interfere in the 2020 election. All three countries have denied the allegations. Mr Trump said Democrats were using the email vote as an excuse to “steal” the election.

Other news, bridge water fund in the second quarter to add a large position in gold ETF.

Bridgewater increased its holdings in the SPDR Gold Trust ETF to 15.34% of its portfolio in the second quarter, or 34%, and valued it at more than $900 million, according to its position report filed with the SECURITIES and Exchange Commission on Aug. 13.

Anz believes precious metals remain bullish for the medium to long term, with spot gold looking at $2,300 in 6-12 months. The bank analysts pointed out that the short-term fluctuations in precious metals prices have not damaged their long-term bullish prospects in the light of loose expectations of global central Banks. After the huge shock caused by positioning, the long-term trend of gold and silver prices is still positive.

The bank expects the spot price of gold in the next six to 12 months period will rise to $2300 an ounce level, while the spot price of silver in the same period can reach the level of $27, and points out that, in addition to the central bank easing booster, global economic growth and the geopolitical uncertainty, the additional variables as well as the U.S. presidential election, will be the precious metals prices continued bullish.

Technical analysis:

The dollar

On the daily chart, the U.S. dollar index.DXY continued to come under pressure after retreating from its previous session high and is now trading around 93.25. The daily MACD red kinetic energy column is gradually expanding and the KDJ random index is oscillating around the 50 level, indicating that the dollar may consolidate in the near future.

In the 4-hour chart, the DOLLAR index failed to break its previous high of 94 and turned downward after breaking its 100-period average. The MACD green momentum column is gradually expanding, with the KDJ random index falling below the 50 level, indicating strengthening dollar bearish momentum, short term or lower.

gold

On daily charts, gold plunged and soared yesterday, ending little changed at around $1,915. The daily chart MACD green momentum column expanded sharply, with the KDJ random index falling below 50, indicating gold bearish momentum is not changing and there is still room for downside.

The 4-hour chart shows gold rebounding from a low of $1,862 to its 100-session average of 1960. MACD green momentum column gradually weakened, KDJ random indicator continued to rise above the 50 level, indicating gold short term bearish pressure reduction, short term or continue to rebound.

silver

On daily charts, silver rallied from its lows, reversing a 15 percent tumble, and bounced back above $26 for the day. The daily MACD green momentum column showed initial signs, with the KDJ random index trying to break below the 50 level, indicating that bearish momentum is still in place for silver, with downside potential remaining.

On the 4-hour chart, silver has rebounded from its low after falling below its 100-period average and is now hovering around its 60-period average. The MACD green momentum column gradually weakened and the KDJ random index broke above the 50 level, indicating that silver’s short-term decline slowed or continued to rebound.

Fundamentals positive factors:

  1. Anthony Fauci, a top U.S. infectious disease expert, said on ABC that he had serious doubts about Russia’s coVID-19 vaccine.

2. Milos Vystrcil, President of the Czech Senate, plans to lead a delegation of about 90 people to Visit Taiwan later this month. Zdenek Hrib, the mayor of Prague, the capital, has promised to go. This will be another visit to Taiwan following the recent visit by US Health Secretary Azar. In response, the Chinese Embassy in the Czech Republic issued a statement, pointing out that Vitzi’s visit to Taiwan is a blatant support for the Secessionist forces and separatist activities in Taiwan. The Chinese side has always been opposed to any form of official exchanges between countries with diplomatic ties and Taiwan.

  1. Tensions between China and the United States are rising. On Monday, China announced sanctions against 11 U.S. politicians and human rights activists, including Senator Marco Rubio, in retaliation for U.S. sanctions imposed last week on 11 Chinese officials in Hong Kong and mainland China.
  2. U.S. Treasury Secretary Steven Mnuchin announced Aug. 10 that companies from China and other countries that don’t follow accounting rules will be delisted from U.S. stock exchanges by the end of 2021.

Fundamentals negative factors:

  1. Data on Wednesday showed U.S. consumer prices rose more than expected in July, with core inflation rising at its fastest pace in 29 1/2 years and prices for goods and services rising across the board.

2. The White House and top Congressional Democrats may not be able to reach an agreement on coronavirus aid without talks for a fifth day, U.S. Treasury Secretary Steven Mnuchin said Wednesday, amid a stalemate that has blocked access to aid for tens of millions of Americans.

3. Russian President Vladimir Putin announced Tuesday that Russia has become the first country to register a vaccine against a novel Coronavirus that caused the outbreak, an announcement that drew criticism from medical experts.

4. President Trump announced Tuesday that the U.S. government will buy 100 million doses of Moderna’s experimental coronavirus vaccine. The vaccine is currently in the later stages of human trials. “We are investing in the development and production of six vaccine candidates to ensure rapid delivery,” Trump said at a news conference. The military is ready to provide the vaccine to Americans as soon as it is fully approved by the FDA, and we are very close to that.”

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