Long XAU/USD on continued risk off sentiment and NIRP enviroment

If the current risk on environment subsides and we see continued deleveraging of equity markets we expect Gold to continue higher. Golds demand is increasing in a negative interest rate environment. Gold used to be a hedge against inflation, now it is a store of value in a negative interest rate environment.

We will trade the breakout of the Bullish pennant to the upside with a target at the 100% extension of the first impulse move at $1400. This target is at the 2013 highs. This is a longer term trade. Will trade out if price falls below $1210.00.