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Gold Signal Update – Three Winning Trades In a Row!

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The Yellow-Metal Prices Hit The Record High Near $1,950 Marks Due To Multiple Factors – Eyes On Durable Good Orders.

Today in the early Asian trading session, the safe-haven-metal prices extended its one-week bullish rally and succeeded in crossing the last week’s lifetime high above $1,900, having hit the fresh lifetime high 1,944.57 level on the day while represented an 8% month-to-date gain. However, the long recovery rally in the gold prices could be attributed to the escalation of tensions between the world’s two largest economies over the closure of consulates.

On the other hand, the continued rise in the coronavirus cases across the U.S. also weighed on the economic recovery prospects, which undermined the broad-based U.S. dollar and extended further support to the yellow-metal price. The gains in the gold prices were further supported by the aggressive monetary easing used by global central banks to control the coronavirus impact. The yellow metal price is trading at 1,933.97 and consolidating in the range between 1,900.05 and 1,944.57. It is worth noting that the gold prices have gained approximately 25% so far this year.

The long-lasting US-China tussle and growing market worries about the ever-increasing number of coronavirus cases kept the investors cautious, which boosted the demand for safe-haven assets. Talking about US-China on-going war, the relationship between the world’s two largest economies (US-China) has been worsening day by day as China ordered the U.S. to close its office in Chengdu in return of the U.S. earlier move to close china office in Houston which eventually exerted downside pressure on the global risk sentiment and pushed investors to take a position on traditional safe-haven assets, including gold.

Additionally, the fears of a full-fledged tussle between the world’s top two economies picked up further pace amid the U.S. blamed China for the COVID-19 pandemic. At the coronavirus front, the pandemic shows no sign of slowing down and continues to hit the confidence about the economic recovery. The United States crossed 4 million officially recorded Covid-19 cases and covered a significant part recorded in just the last 15 days. Almost 1,000 above people died each day between Tuesday and Friday in the U.S. whereas, there were also a near-record 74,000 new cases on Friday. With a community of around 40 million, California, about twice Florida’s, is now the worst-hit state, nearing 450,000 cases. Globally, the number of coronavirus infections has now crossed 16 million, as per the Johns Hopkins University report. However, the non-stop virus cases continuously affecting global economic growth. This, in turn, the U.S. dollar dropped to 22-month lows and helped the dollar-denominated commodity yellow-metal.

Apart from all these, the yellow-metal prices took an additional strength from the aggressive monetary easing delivered by global central banks to stop the virus impact. In turn, the U.S. Treasury yields dropped amid an unprecedented level of money-printing, which boosted the non-yielding gold.

At the U.S. front, the broad-based U.S. dollar remained depressed and reported losses on the day due to the U.S. saw a record number of daily COVID-19 cases and increased U.S.-China tensions over the latest disagreement between the two countries also weighed on the USD. The losses in the U.S. dollar was further bolstered by sliding U.S. Treasury bond yields, which further boosted the non-yielding yellow metal.

Gold price moves history, hits all-time high around 1,944, and returning to trade at 1,931 level, and it has the potential to decline further unto 1,925 level to achieve retracement. The fresh closing of the one hourly candle is indicating that bulls are weakened, and selling may be observed in gold today. Check out a quick trade plan below.

Entry Price – Sell 1937.4

Stop Loss – 1941.4

Take Profit – 1929.4

Risk to Reward – 1:2
Profit & Loss Per Standard Lot = -$400/ +$800

Profit & Loss Per Micro Lot = -$40/ +$80

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