Gold: Setting Up For A Substantial Move Higher In 2019

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About: SPDR Gold Trust ETF (GLD), Includes: AAAU, BAR, DGL, DGLD, DGP, DGZ, DZZ, GEUR, GHE, GHS, GLDI, GLDM, GLDW, GLL, GTU, GYEN, IAU, IAUF, OUNZ, PHYS, QGLDX, SGOL, UBG, UGL, UGLD
by: Victor Dergunov
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Victor Dergunov
Long/short equity, value, special situations, Growth
Summary

Gold has been on a roller-coaster ride over the past year.

However, despite the rocky price action, gold is still about 20% higher than its 2015 bear market low, and is in a well-defined, long-term uptrend.

Moreover, it appears that the technical, fundamental, and psychological factors surrounding gold are finally coming together.

The negative headwinds provided by the Fed via interest rate tightening are likely to transition into positive tailwinds as the Fed's tightening cycle concludes.

Flattening and inverting interest rates, lower inflation, reduced probabilities of future rate hikes are signaling lower rates going forward, which should make gold shine in 2019 and beyond.

Source: FinancialTimes.com

Gold/SPDR Gold Shares (GLD) is at a crucial juncture with the yellow metal trading around its key $1,250 level. It's been a roller-coaster ride for gold over the past year with