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Forex Signals

Gold Prices on a Bullish Run – Is It Going after 1,770? 

The safe-haven-metal prices extended its 4-day winning streak and rose to the fresh 7.5-year high of $1,760 level since November 2012 while representing 0.90% on the day, although the Federal Reserve’s President Jerome Powell rejected negative rate once again. However, the reason for the gold upticks could be attributed to the renewed tension between the US-China trade tussle. Whereas, the dollar index, which tracks the value of the greenback (gold’s biggest nemesis) against majors, is also sidelined near 100.34. At this moment, the yellow-metal prices are currently trading at 1,761.78 and consolidate in the range between the 1,743.02 – 1,764.73.

The central bank repeatedly showed disagreeability to using negative interest rates to respond to the economic impact of the coronavirus pandemic, Federal Reserve’s President Jerome Powell said CBS during a 60-minute interview held over the weekend. 

Despite this, the gold rose to multi-month highs mainly due to the White House trade advisor Peter Navarro said during his this week interview that China sent hundreds of thousands of passengers on aircraft to Milan, New York and around the world through planning to spread the virus after hiding it from all over the world for almost 2-months.

In the meantime, the reasons for the intensified trade tension could also be attributed to the statement to blocking chip supplies to Huawei Technologies. On the other hand, the uptick in the stocks, which usually have an inverse relationship with gold, also failed to erase gains in yellow-metal.

Whereas, the Federal Reserve Chair Powell said that both the Central bank and Congress should help the economy recover from the virus outbreak recession. As markets were pricing negative rates earlier this month, President Trump called them a gift enjoyed by other countries. However, Powell destroyed expectations for negative rates on Wednesday. Elsewhere, Bank of England (BOE) Governor Andrew Bailey and Bank of Japan (BOJ) Governor Haruhiko Kuroda on Thursday hinted that their focus is on bond purchases and other lending programs to keep borrowing costs low and recover the economy from the virus outbreak recession crisis.


Gold – Technical Outlook

Support Resistance 

1758.2 1771.4

1750 1776.4

1745 1784.6

Pivot Point 1763.2

Gold prices continue to trade on a bullish run, and it seems to head towards the next resistance level of 1,770. Overall this marks a 138.2% Fibonacci retracement level, which holds around 1,780 level. On the lower side, the precious metal gold may find support at 1,756 area and 1,738 area while the continuation of a bullish trend may lead to gold prices towards previously suggested target levels of 1,770. The 50 EMA and MACD both are supporting bullish bias for gold. Let’s keep an eye on 1,763 now to stay bearish below and bullish above this level. Good luck! 

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Beginners Forex Education Forex Assets

Gold As Part of a Diversified Investment Portfolio

Today we’re gonna talk about what diversification means and gold as part of a diversified portfolio. Finally, we will analyze the gold, what has happened in recent months, and what we expect from it in the coming months.

If we want to define diversification we could do it as a way to invest in different assets with the aim of reducing portfolio risk. There are different theories and formulas, but the important thing is to understand that the assets in which you invest have to be totally or partially uncorrelated. Investing in BBVA and Telefónica at the level of decoupling is of little use. It obviously implies a small diversification (although only sectoral), but they are quite correlated assets. If the bag goes down or up, as the beta of the two is very similar, the two will go up and down. As we can assume, this is not the best way to reduce risk or volatility. The same would be extendable, for example, to the case of buying the American stock exchange: within being diversifying (geographically), we would be doing it with a highly correlated product.

If we want to define diversification we could do it as a way to invest in different assets with the aim of reducing portfolio risk. To make effective and real diversification we have to do it by investing in assets that have a correlation close to 0, both positive and negative. To diversify you can combine many assets, but there is a limit after which, even by increasing the number of assets in a portfolio, you do not reduce risk (It is called systemic risk).

Some theories say that this number varies between 8 and 12 assets, but depends a lot on whether they are separate assets, funds, or sectoral indices. To make effective and real diversification we have to do it by investing in assets that have a correlation close to 0. To build an efficient portfolio, we need to know the volatility (variance of the assets that make it up), and its correlations. Thus we can estimate the optimal diversification of a portfolio (also called an efficient border).

It is important to note that the correlations of these assets, which make up a portfolio, vary over time. For this reason, the composition of the portfolio has to be adjusted if we want to have optimal and efficient diversification.

One of the great virtues of the Seasonal Quant Multistrategy Sphere, FI is precisely that it is not correlated with any other asset as it develops a unique strategy based on the seasonalities of raw materials. For this reason, it can perfectly be part of the diversification of an efficient portfolio, more when it has really low volatility and therefore is suitable for the vast majority of investors.

Lately, there have been many comments from permanent portfolios, which are always on the market, but we think that in the case of gold this is not entirely true. You have to know how to choose the moment, as in many other investments, since gold can bring negative returns to the portfolio at certain times and even increase volatility. Let’s see it.

For starters, let’s compare the long-term behavior of gold with the SP500 index and 10-year American bonds (treasuries). We take the VOO (ETF of the SP500), the GLD (ETF of gold), and the TLT (ETF of long-term bonds). The comparison began in 1974 after the gold standard with Nixon ended in 1971. It coincides that it is the first year that has long-term bond data. “Heavy spending for the Vietnam War”

Gold has its moments, in 1974 it goes up 72%, while the SP500 goes down 26%. During the dot.com bubble gold rose by 21% (2000-2002) while the SP500 fell by 38% and in the last crisis 2008, the SP500 fell by 38% while gold only rose by 8%. In 1980 gold was quoted at 590/oz and in 2005 it was worth the same.

Combining an asset always with another asset with which it has a near zero or negative correlation does not help much if the asset in question is not of absolute return. And it has its times as bad as gold. I mean, you have to know the time to have it in your wallet.

Gold may be a safe haven currency, it even seems to beat inflation during the comparison period, but not having much more utility should not be added to a permanent portfolio as a long-term investment, because in many cases it has very negative returns and adds volatility to the portfolio. In addition, it often does not serve as coverage in bad times, as has been shown.

“If you look at the March data, we see that they have all dropped, gold, equity, and bonds. Something incredible. We call this total correlation.”

Let’s give an example, if we stop to observe in the March data, you see that they’ve all gone down, gold, equity, and bonds. That’s amazing. We call this total correlation. Assets that a priori should not move in tandem, do so and this destroys any portfolio. This is the reason why the management team of the Seasonal Sphere Quant Multistrategy, FI thinks that you have to have gold in your portfolio, but selectively and punctually. We have already taken a position and will continue to ponder it as long as external factors indicate that it is reasonable to have it because it can provide profitability and control of volatility.

What happened in the past months and what we expect from GOLD in the coming months? What happened in March to make everything correlate? To find out the best time to have gold in the portfolio we believe it is important to know what happened in March and the previous months with gold.

There are two main reasons for this March downturn. The first is in the futures market. The fact that speculators are strongly positioned long hands does not like it. The good thing about being all leveraged is that with a small move you clean up the market and this is precisely what happened. Strong hands shake the tree a little so that those who can’t keep warranties close (they’ll buy back in highs and help raise the price further when strong hands come off.).

And the cleaning of the market came:

We have seen the fastest decline in the equity market in years, even I think we can say the fastest in history (in days). Liquidity has been reduced even in the high-quality bond market and all accompanied by a rise in bestial volatility.

A rise in volatility leads to higher collateral margins for participants, that is, the money they need to take into account every day in order to keep their leveraged positions open. And as many operators lost in equities and fixed income the shortage of volume made them sell at worse prices, because many chose to sell what was still in profits and had liquidity. This dragged to the market at the time when everything went wrong. It rarely happens, but it does happen, so it’s important to diversify a portfolio with the right assets.

In addition, the market needed to be cleaned up so that something out of the ordinary could happen and the market could return to highs. We can observe that during the mass liquidations of March, more or less 100,000 contracts (100000x100x1720= about 17.2MM (nominal billion) have left the market, giving the green light to see new highs. In addition, there have been two more events, the Coronavirus (Covid-19) which is an event not expected by anyone (we have also seen how it has put the world economies against the wall) and of course, as expected, central banks all agree to mass-print money (more than ever) as a theoretically infallible remedy to exit the crisis. We will see in the future how the experiment ends.

With the current price of the future of gold over $1,720, a significant volume of open positions on call 2,500 this December, but also on call 3,000, and even on call 4,000. In addition, there is still a very strong interest for the call 3.500 and call 4.000 of June 2021. Therefore, and although we know that options positions are often part of a more complete portfolio, combined with futures or with options spreads, we conclude that there is a very strong bullish bet on gold by the market.

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Forex Assets

Why Are Digitized Gold and Silver Perfect for Diversification?

Today, people have more and more investment options, from classics like gold and silver to recent innovations like Bitcoin and other cryptocurrencies. But there is one type of asset that has stood the test of time: precious metals. Here’s why what may seem like an old-school outdated product is still very interesting from the point of view of a young digital native investor.

A Brief History of Gold and Silver

The civilization of the Incas referred to silver and gold as “sun sweat” and “moon tears”. In ancient Greek mythology, gold represented the glory of the immortals. And even historical figures like Sir Isaac Newton believed in the long-discredited pseudo-science of “alchemy,” which aimed to turn basic metals into gold. The history of gold as money dates back to around 550 B.C. and government-issued fiat coins, such as the US dollar, used to be directly linked to gold in a monetary system known as the gold standard. And let’s not forget the statues of the Academy Awards, the World Cup trophy, or the medals for first place in the Olympics. All bright, beautiful, solid gold.

In January 2019 the purchase of gold by central banks reached its peak of the last 50 years, mainly because countries like Russia are changing their reserves from US dollar to gold. At the present time, the world consumption of newly produced gold is around 50% in jewelry, 40% in investments, and 10% in the industry. With 440 tons per year, China is the world’s largest gold-producing country. In January 2019 the purchase of gold by central banks reached its peak of the last 50 years, mainly because countries like Russia are changing their reserves from US dollar to gold.

Silver, on the other hand, remains the second most popular precious metal just behind gold. It is also used for jewelry, as an investment asset, and as an industrial resource. Many investors appreciate silver as an investment, as it tends to be more volatile than gold due to its lower trading volume.

Inflation-Proof Investment and Portfolio Diversification

Analysts have long argued that gold acts as a hedge against inflation and protects investors against market volatility and unpredictability. A general rule is to have 5-10% gold exposure in the portfolio.

For younger investors with higher risk tolerance and higher return expectations, gold might look like a conservative investment. But it can complement and enhance an investor’s overall portfolio by balancing technology-oriented assets with a time-tested commodity.

Gold is both a creator of wealth and a keeper of wealth. As young investors, you have to keep your eyes on the finish line, probably several decades in the future. Since people now live and work longer, long-term investment strategies that include stabilizing asset classes are crucial.

Why Digitize Gold and silver?

Possessing physical gold and silver has always been desirable for many. There is something tangible about it. Its physical quality means that you can see it, feel it, weigh it and admire its beauty. From a golden calf, a golden fleece and gold crowns to streets paved with gold, this metal has constituted a fundamental element of our collective human history and its images have filtered even into our language (for example, “as good as gold”, “worth its weight in gold”, etc.). In a word, gold is timeless.

There are companies that offer the best of both worlds: Purchases and possess digitized physical gold or silver. But you can exchange it with the same convenience and user experience you’re used to with other digital assets.

But possessing physical gold or silver has its disadvantages. You need to visit a gold trader or at least order physical coins or gold bullion at your store. Then you have to take care of security on your own and keep it at home. In case someone comes in and steals it, you need proper insurance and also a special safe to cover it. An alternative is to keep it in a safe deposit box at the bank or on a gold trader, which means you have to move there and pay relatively high commissions for it.

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Cryptocurrencies

3 Assets that Will Keep Your Investment Inflation Resistant

Inarguably, the value of the dollar today is not the same as it was a decade or two ago. You use more currency to buy less, and that is what inflation is all about.

Inflation can be defined as the measure of the average price level, in an economy, of a unit of goods and services. It is the increase in the price over a particular period, where you cannot use the same amount of currency to purchase a specific item. 

No doubt, the pandemic and the rushed measures to control it were devastating to the world economy. Governments worldwide scrambled to shut down their economies and started printing money to control the spread while also trying to keep the local market functional.

The main issue with printing excess money is that it eventually decimates the host government’s currency and pushes the economy into an inflationary spiral. 

Nonetheless, inflation is a natural event, and only the most disciplined investor benefits from it or reduces its effect on their investments. 

How to Safeguard Against Inflation

In response to the COVID-19-inspired economic fallout, the Fed was forced to pull out all the stops in a bid to control it. These measures have pushed the Federal Reserve balance sheet to over the $7 trillion mark from $4 trillion, and further contractions are expected.

But what should you do as an investor? 

Ideally, there are two factors to look out for when searching for an inflation-resistant asset; real yield and store of value.

An asset with a large store of value such as gold does not lose its purchasing power over a particular period. If the asset can also create income, the better, as it fulfills the two requirements.

There are a couple of other benchmarks that measure potential hedges against inflation, and they include how the asset holds its value over time. Other essential factors include how people perceive the assets as a store of value across borders and how quickly it can be monetized.

Lastly, the ideal inflation-resistant asset should be easily movable across geographical borders in case of unforeseen hurdles.

The perspective of bitcoin as a viable store of value that can be monetized quickly is gaining traction, at least in recent months. Bitcoin is also beyond the control of any government and is, therefore, borderless.

Understanding the Top Three Assets That Will Keep Your Investment Inflation-free

While changes in the inflation level depend on various factors, such as the rapid increases in raw materials prices and rising wages, the coronavirus pandemic is the most significant.

In the last century, the US dollar buying power has been on a free fall, mostly because of the monetary, fiscal policy adopted. The Federal Reserve’s primary response has been to print money and purchase securities on the open market to plug an economic crisis like it is happening now. Although it adds more liquidity to the market, this policy diminishes the value of the dollar, which sometimes aggravates an already dire situation. 

Consumer Price Index (CPI) is the primary method of tracking US Dollar inflation. As far back as 1948, the inflation rate has been at an average of around 2%. This translates to a loss in value of up to 2% every year. That means the money in your savings account is losing its value.

Although inflation is a significant characteristic of market economies, it is possible to plan for it by focusing your investment in asset classes that outperform the market during such challenging times.

Gold 

Traditionally, gold has been the perfect inflation hedge based on its stability. Not long ago, gold went above the $2,000 an ounce ceiling to record a 27% raise last year, 2020, which is quite enormous. 

In fact, many people have previously viewed gold as a possible alternative currency, especially in countries whose money is losing value fast. This precious metal is tangible and real and tends to hold its value in the long term, like no other asset.

Typically, it is common practice for gold or other strong currency to replace a weakened local currency to keep the economy sane. Central banks around the world hoard gold as they start to print money. They spend more of the bad money, which loses value and hold on to the good money, which is gold.

Unfortunately, gold is not always the perfect hedge in tough economic times. When inflation is in an upward trajectory, central banks move in to enforce a monetary policy that includes increasing interest rates. Assets such as gold, with no yields or any other accumulating rewards, are not always the best investment vehicle.

Other better assets will protect your wealth from inflation and still give you good yields. However, diversification is vital for a strong portfolio.

Bitcoin

Last year, bitcoin was up by 66%, and the rise continued into the new year to post a high of $40,519.45, an all-time high. With its exceptional value, bitcoin is hedging against inflation and chaos.

 

The borderless and decentralized cryptocurrency is beyond any government control, and they cannot print more of it like they do with the standard currency. The maximum bitcoin supply is 21 million, which serves to limit the supply and prevent eventual dilution.

Bitcoin supply remains constant, regardless of what the local governments do.

Interestingly, the current government shutdowns are playing in the hands of digital assets such as cryptocurrency, thereby increasing its value as an inflation hedge asset. But how is that so?

Clearly, the current shutdowns have directed the focus to digital currencies. This may be one of the reasons that propelled bitcoin to an all-time high. It is one of the few assets posting excellent results, which is good for crypto investors. 

Stocks

Thanks to coronavirus, the S&P 500 index surged 55% from the lows observed in March last year despite all the groom. Similar to bitcoin and gold, the lockdowns and the resulting money printing has caused a rally to the stocks. But how can this happen? 

According to economists, the stocks’ value is not appreciating, but rather the dollar is depreciating against the stocks. The surge in equities is a significant indication of diminishing trust in the local currencies, which forces the wise investor to add more stocks to their portfolio to safeguard against losses.

Apparently, investors have lined up to take up stocks at the expense of fiat currencies.

Final Word

Ostensibly, most investors do not give a hoot about inflation and its effect on day-to-day trading and investment. Well, indeed, what you can’t see can’t hurt you, but inflation is the exception. It will hit where it hurts the most; your financial well-being.

The common practice is to hoard local currency in the form of savings to safeguard against tough times. Putting away something for the rainy day is alright, but the strategy has a significant flaw. You lose a bit of the savings to inflation. Saving in a bank is not a viable option, especially when the global central banks do everything to devalue the local currency.

The looming economic crisis, driven by the continued printing of money, calls for wise investment decisions. Ideally, invest in inflation hedge assets such as gold, bitcoin, and stocks to weather the current storm. Don’t be on the losing side by putting so much faith in the dollar and other global currency.

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Forex Signals

Gold Closed 28 Pips – Brace for a Breakout Trade!

During Monday’s Asian trading session, the yellow metal prices failed to maintain their overnight bullish streak. They edged lower around the $1,855 level mainly due to the risk-on market sentiment, which tends to weaken the safe-haven yellow-metal prices as investors continuing a retreat from the safe-haven asset after renewed progress in U.S. stimulus measures.

Despite the ever-increasing infections of the covid strain outside the epicenter of Britain and South Africa, the market trading sentiment managed to stop its overnight negative performance and started to flash green on the day amid renewed hopes for additional U.S. fiscal stimulus measures. These hopes were triggered instantly after the incoming chairman of the U.S. Senate Budget Committee said that Democrats would use a rare procedural tactic to pass major parts of a Covid-19 relief package if Republicans refuse to move on the measure. In addition to this, the optimism over the rollout of vaccines for the highly infectious coronavirus disease was also exerting a positive impact on the market trading sentiment. As a result, the S&P 500 Futures print 0.20% intraday gains by press time of Asian session on the day.

At the USD front, the broad-based U.S. dollar failed to stop its long bearish bias and dropped further on the day as demand for the safe-haven assets declined amid progress toward agreeing on U.S. fiscal stimulus. Conversely, the declines in the U.S. dollar could be short-lived or temporary as the fresh COVID-19 worries and weak European economic data helps the safe-haven assets to stop t its bearish rally.


Gold traded in line with our forecast to test the support area of 1,850 level, but soon it started forming candles upward, supporting bullish reversal in the precious metal. Thus, we decided to close the trade manually with +28 pips. Soon we will open another position in gold to secure the next trade; let’s stay tuned. Good luck!

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Forex Signals

Gold Supported Over Double Bottom – Brace for a Breakout Setup! 

During Friday’s Asian trading session, the safe-haven-metal failed to extend its previous-day winning streak and drew some offers near the $1,860 level as the Biden administration’s plans of huge spending to stimulate the U.S. economy undermined the safe-haven yellow-metal prices aggressively. It is worth recalling that the yellow metal refreshed a 2-week high on the previous day amid the weaker U.S. dollar, but the upticks were short-lived and temporary as the stimulus hopes and upbeat U.S. jobs data started to probe the gold bulls afterward. Besides this, the optimism over a possible coronavirus vaccine also played its major role in weakening the safe-haven yellow-metal prices. 

On the different page, the downbeat comments from U.S. President Joe Biden over the coronavirus condition, as well as the recently appointed US Centers for Disease Control and Prevention (CDC) Director’s fresh doubts over the availability of vaccines, were seen as the key factors that could help the yellow-metal prices to limit its deeper losses. Meanwhile, the heightened trade/political war between the U.S. and China could also play its positive role in supporting the safe-haven yellow metal.

Across the pond, the broad-based U.S. dollar bearish bias, triggered by the prospects of massive fiscal spending in the U.S., was also seen as one of the key factors that cap losses for the yellow metal as the price of gold is inversely related to the price of the U.S. dollar. As of writing, the yellow metal prices are currently trading at 1,862.74 and consolidates in the range between the 1,860.15 – 1,870.87.

Looking forward, the market traders will keep their eyes on preliminary readings of January’s activity numbers from the U.K., the U.S., and Europe for fresh directions. In addition to this, the updates about the U.S. stimulus package will also be key to watch. 


Daily Support and Resistance

S1 1834.44

S2 1851.21

S3 1860.76

Pivot Point 1867.99

R1 1877.54

R2 1884.76

R3 1901.54

Entry Price – Sell 1857.76

Stop Loss – 1863.76

Take Profit – 1850.26

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

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

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

 

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Forex Signals

Gold Violates Daily High – Brace to Capture Buying Trade! 

The yellow metal managed to stop its overnight losses and drew some fresh bids around above mid-$1,800 level as the prevalent downbeat market trading sentiment, triggered by the worsening coronavirus (COVID-19) conditions Sino-US tussle, underpinned the safe-haven metal prices. Though, the equity market losses were further bolstered after the Chinese planned to extend the Hong Kong crackdown after the arrests of nearly 50 democrats during last week, which in turn, provided some additional support to the yellow metal prices. 

In the meantime, the chatters surrounding that the U.K. is considering to increase hardships for Chinese companies, via tightening laws on imports, which in turn, added further pressure on the market trading sentiment and underpins the precious metal. In contrast to this, the U.S. President-elect Joe Biden’s pledge to announce trillions of dollars in new COVID-19 relief measures keep easing doubts over the global economic fallout, which becomes the key factor that kept the lid on any additional gains in the yellow metal prices. Meanwhile, the jump in global vaccinations could also help the equity market to limit its losses. The yellow metal prices are currently trading at 1,856.94 and consolidating in the range between 1,841.51 – 1,858.30.

The global markets trading sentiment failed to stop its overnight negative performance and remained sour amid Sino-US-UK tensions and growing coronavirus fears. At the COVID-19 front, the number of global cases has exceeded 90.87 million as of Jan. However, approximately 22.6 million cases were only marked in the U.S., with over 22,000 American has died from the virus during the previous week. Considering the current condition of the virus, the authorities from more countries, such as Europe and China, tighter their lockdown measures, which positively impacted the yellow-metal prices. 

Besides the virus woes, the reason for the bearish trading sentiment could also be associated with the long-lasting US-China tussle, which is continuously picking pace as the US Trump administration plans more sanctions. On the other side, China has shown its dislike over U.S. interference in matters relating to Hong Kong and Taiwan. In addition to the U.S., the U.K. has also increased hardships for Chinese companies via tightening laws on imports. However, the fears of a full-fledged trade/political war between the U.S., U.K., and China have been weighing on the market trading sentiment and were seen as major factors that kept the gold prices higher.


Entry Price – Buy 1857.14

Stop Loss – 1851.14

Take Profit – 1864.64

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

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

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

 

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Forex Signals

Gold Breakout Ascending Triangle Pattern – Bullish Bias Dominates! 

During Monday’s Asian trading session, the precious metal managed to extend its early-day positive performance and remained bullish around above the $1,920 level as the sharp rise in global COVID-19 cases and the possibility of more countries imposing tighter restrictions tend to underpin the safe-haven yellow metal. Meanwhile, the broad-based U.S. dollar weakness, triggered by the market upbeat mood, also played its key role in underpinning the gold prices as the price of gold is inversely related to the price of the U.S. dollar. However, the market trading sentiment was being supported by the optimism surrounding the coronavirus (COVID-19) vaccine, Brexit headlines, and the U.S. covid aid package. 

In that way, the upbeat market sentiment was seen as one of the key factors that kept the lid on any additional gold gains. Furthermore, the upticks in the gold prices could also be attributed to the escalating US-China tussles, which eventually lend some support to the safe-haven yellow metal. As of writing, the yellow metal prices are currently trading at 1,923.70 and consolidating in the range between 1,893.81 – 1,925.35.

The market trading sentiment managed to extend its last week’s positive performance and stay positive on the day as the U.S. stocks futures’ bullish appearance tends to highlight the risk-on sentiment. Behind this positive performance was the optimism surrounding the coronavirus (COVID-19) vaccine, Brexit headlines, and the U.S. covid aid package. Across the ocean, the latest upbeat prints of Asian activity numbers from Japan, South Korea, Indonesia, and Taiwan for December also played its major role in underpinning the market trading sentiment. However, the positive tone around the market sentiment favors the gold buyers via U.S. dollar weakness.

As a result of the risk-on mood, the broad-based U.S. dollar failed to gain any positive traction and remained bearish on the day. Meanwhile, the losses in the U.S. dollar were further bolstered by the easy money policy of the U.S. Federal Reserve and central bankers elsewhere. It is worth mentioning that the U.S. Federal Reserve is set to release the minutes from its December meeting on Wednesday. In that way, the market players will be looking for more detail on making their forward policy guidance more explicit and the chance of a further increase in asset buying in 2021. Hence, the losses in the U.S. dollar becomes the key factor that helps the gold to stay bid as the price of gold is inversely related to the price of the U.S. dollar. 

Elsewhere, the upticks in the gold prices could also be attributed to the concerns over the coronavirus (COVID-19) and tussles between the U.S. and China. The coronavirus (COVID-19) cases continue to rise, with above 85 million COVID-19 cases as of Jan. 4, with over 20.6 million cases of them in the U.S. Apart from the U.S., Japan is also gaining attention amid the recent surge in the cases and the death toll. As per the latest report, Japan recorded more than 3,100 new cases overnight. While Tokyo reported 816 new infections, bringing the cumulative total to 62,590, the largest among the country’s 47 prefectures so far. This, in turn, the government of Japan is seeking expert advice on whether to declare a state of emergency in Tokyo and neighboring prefectures. 

Looking forward, the market traders will keep their eyes on Caixin Manufacturing PMI for December, which is expected to reprint 54.9. Meanwhile, the second readings of monthly PMIs from Europe, the U.K., and the U.S. can decorate the calendar ahead. In addition to this, the updates about the U.S. stimulus package will be key to watch. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance. 


Daily Support and Resistance

S1 1863.1

S2 1879.13

S3 1888.81

Pivot Point 1895.17

R1 1904.84

R2 1911.2

R3 1927.24

On Monday, the gold is trading sharply bullish at the 1,925 level. Gold has disrupted the ascending triangle pattern at the 1,898 mark on the daily chart, and now gold is likely to encounter resistance at 1,933 and 1,965 marks. The buying trend can be seen in gold, but unfortunately, our trades are closed at stop loss. I will be looking to take another buying trade once gold retraces back to 1,913 level. Good luck! 

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Forex Course

199. Effects Of Gold On AUD/USD & USD/CHF Currency Pairs

Introduction

Gold is among the most traded commodities globally due to the good intrinsic value of this asset. Considering that Gold is less impacted by uncertain conditions, its prices rise when other economies perform badly and fall when there is an economic boom.

Gold impacts AUD/USD and USD/CHF in opposite manners. Price fluctuations in Gold primarily impact three major currencies that include AUD, USD, and CHF. Let’s discuss how Gold affects AUD/USD and USD/CHF.

The Effect of Gold in AUD/USD

When the price of gold rises, the AUD/USD will move upwards. These two aspects share a positive correlation; most of the time, they move together. An increase in the U.S. dollar generally contributes to the gold prices to fall and vice versa. The price of Gold perfectly depicts the economic health of the country.

During an economic crisis in the country, investors purchase Gold as protection from inflation or an economic crisis. But the inner value of the Gold does not change whether or not there is a crisis. Furthermore, gold value is displayed in the dollar, meaning every gold transaction, you spend/receive a dollar.

Australia’s Economy and its Impact on Gold Prices

AUD and Gold share a positive relationship and are inversely related to the USD. If the gold price rises, the Australian exports will increase, resulting in the expansion of the economy and foreign investment. When the gold price increases, the AUD/USD will move upwards because of the increasing demand for the AUD.

Impact on the USD/CHF

The Switzerland currency holds a positive correlation with Gold. This is because 25% of CHF is supported by the gold reserves. The refineries in Switzerland also process 70% unrefined gold every year. Additionally, Gold and CHF are inflation hedging during uncertain times.

Therefore, when the price of gold increases, the CHF value also appreciates or increases, vice-versa. Gold has a positive relationship with CHF and an inverse relationship with USD/CHF. When the price of gold rises, the value of USD/CHF falls down and vice-versa.

[wp_quiz id=”97481″]
Categories
Forex Signals

Gold Trade Choppy – Can Upward Channel Underpin? 

During Friday’s Asian trading session, the yellow metal prices failed to extend their overnight winning streak. They edged lower around the $1,880 level mainly due to the upbeat market sentiment, which tends to undermine the yellow-metal prices as investors continuing a retreat from the safe-haven asset after progress in U.S. stimulus measures and Brexit talks. Elsewhere, the reason behind the risk-on market sentiment could also be associated with the expectations for global economic recovery on potential coronavirus vaccines. 

In contrast to this, the widespread rise in the COVID-19 cases from the U.K., U.S., and Europe keeps challenging the market risk-on mood, helping the bullion prices limit their deeper losses. Apart from this, the US-China long-lasting tussle is also questioning the market upside momentum, which also caps further downside for the gold. Besides this, the broad-based U.S. dollar weakness has also played its major role in supporting the gold prices as the price of gold is inversely related to the price of the U.S. dollar. The yellow metal is currently trading at 1,883.14 and consolidating in the range between 1,878.60 – 1,886.06.

The news about vaccine rollouts was supporting the market trading sentiment. In the meantime, the progress on both Brexit trade talks and the latest U.S. stimulus measures also boosted the market trading sentiment, which tends to undermine the safe-haven metal prices. As per the latest report, House Speaker Nancy Pelosi said she hopes to receive the final legislative text on the deal later on Thursday. Whereas, President Donald Trump said by a tweet that stimulus talks were looking good. However, the lawmakers are now confident to approve the stimulus before the year-end. Additionally, the market trading sentiment was supported by the on-going hopes of the coronavirus vaccine. Thus the positive tone surrounding the market trading sentiment was seen as one of the key factors that kept the gold prices under pressure. 

At the USD front, the broad-based U.S. dollar failed to stop its long bearish bias and dropped towards its worst week in a month as demand for the safe-haven assets declined amid progress toward agreeing U.S. fiscal stimulus. It is worth mentioning that the U.S. dollar was down 1.2% for the week so far and has dropped by 12.7% from a 3-year peak in March, falling to 89.862, just above a 2-and-a-half-year low seen on the previous day. Besides, the U.S. dollar losses could also be associated with Powell’s dovish comments on inflation. The U.S. Federal Reserve’s promised to keep interest rates low until an economic recovery is secure. However, the U.S. dollar losses helped the yellow-metal prices limit its deeper losses as the price of gold is inversely related to the U.S. dollar price.

In contrast to this, the growing worries over the resurgence of the coronavirus pandemic have been destroying the hopes of the global economic recovery, which keeps challenging the market trading sentiment and help the yellow-metal prices to limit their deeper losses. On the other hand, the long-lasting tussle between the United States and China remains on the cards as the U.S. continuously imposing sanctions on Beijing. This, in turn, added further questions around the market trading sentiment and became the key factor that kept the lid on any additional losses in the safe-haven metal prices.

Looking ahead, the market traders will keep their eyes on U.K. Retail Sales m/m, which are scheduled for publicity later in the day. Meanwhile, the German PPI m/m data will also be key to watch. Apart from this, the updates surrounding the Brexit, virus, and U.S. stimulus package will not lose their importance. 



Daily Support and Resistance

S1 1807.17

S2 1827.65

S3 1840.79

Pivot Point 1848.13

R1 1861.27

R2 1868.61

R3 1889.09

The yellow metal gold is trading in between a tight range of 1,884 – 1,880 mark. Gold retraced downward to complete 38.2% Fibonacci level of 1,876. On the daily timeframe, gold has formed an upward channel supporting gold around 1,874 level along with a resistance level of 1,894 and 1,910 level. The 50 periods EMA holds around 1,864, suggesting an upward trend in gold; however, we are not opening a buying trade yet as the MACD forms histograms below 0, supporting a selling trend. Let’s consider taking a buying trade over the 1,874 level today. Good luck! 

 

Categories
Forex Signals

Gold Trades Dramatically Bullish Over Risk-off Sentiment – Quick Intraday Outlook! 

The yellow metal gold price continued to extend their previous day’s bullish bias and took some modest offers around the $1,888.93 level—the bullion prices battle Wednesday’s high despite a U-turn from $1,844 post-Fed. However, the modest downtrend in the yellow-metal prices was mainly tied to the optimism surrounding U.S. coronavirus (COVID-19) stimulus and the upbeat Brexit headlines, which kept the market trading sentiment positive and undermined the safe-haven metal prices. 

Furthermore, the upbeat trading sentiment could also be associated with the optimism over a potential vaccine/treatment for the highly infectious coronavirus, which adds further burden around the safe-haven metal. Conversely, the long-lasting coronavirus (COVID-19) woes and the tussle between US-China keep questioning the market risk-on mood, which might give some support to the bullion prices to limit its deeper losses. Elsewhere, the broad-based U.S. dollar weakness could also be considered as one of the key factors that help the bullion prices to limit its deeper losses. The yellow metal prices are currently trading at the 1,888 level and still heading upward. 

Despite the widespread doubts over the global economic recovery from coronavirus (COVID-19), the market trading sentiment remained supportive by optimism over the rollout of vaccines for the highly infectious coronavirus disease. In addition to this, the growing hopes for additional U.S. fiscal stimulus measures also exerted a positive impact on the market trading sentiment, which undermined demand for the safest assets such as the U.S. dollar.

Across the pond, the reason for the risk-on market sentiment could also be attributed to the fresh reports suggesting that the U.S. Congress inched closer to the covid stimulus. It is worth mentioning that the Republicans and Democrats in Congress were reportedly “closing in on” approving a $900 billion stimulus bill on Wednesday, the most positive sign seen in months. Moreover, they are also working to pass a $1.4 trillion spending bill for the fiscal year starting on Oct. 1. by Friday to prevent a government shutdown.

At the USD front, the broad-based U.S. dollar failed to stop its previous day bearish bias. It drew further offers on the day as Fed Chair Jerome Powell passed cautious statements, indicating disinflation pressure while expecting the economy to strengthen in the second half of 2021. Apart from this, the Federal Reserve policymakers conveyed their dovish outlook for the long-term while showing a willingness to supporting the economy until they see “further progress” in employment and inflation. Meanwhile, the risk-on market sentiment also weighed on the U.S. currency. However, the U.S. dollar losses helped the gold prices to deeper its losses as the price of gold is inversely related to the price of the U.S. dollar. The U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.04% to 90.102 by 9:12 PM ET (2:12 AM GMT).

In contrast to this, the escalating market concerns regarding the continuous rise in new coronavirus cases in the U.S. and Europe keep fueling the doubts over the global economic recovery through imposing new lockdown restrictions on economic and social activity, which keep probing the upbeat market performance and lend some support to the safe-haven yellow metal. Apart from this, the fears of a full-fledged trade/political war between the U.S. and China also challenging the market risk-on mood, which also might help the yellow-metal prices to limit their losses.


Daily Support and Resistance

S1 1827.65

S2 1840.68

S3 1848.13

Pivot Point 1861.27

R1 1868.61

R2 1889.09

R3 1909.10

On the technical side, the precious metal has entered the overbought zone as it’s hitting the resistance level of 1,893 level. Closing of candle below this level is suggesting chances of a selling correction in gold; therefore, we can expect gold to drop until 1,875 level. The MACD and RSI are suggesting strong buying trend in gold, and we should look for buying trades actually, but the metal is overbought, and it should come down a bit before giving us further buying trades. Let’s consider taking buy over 1,880 level today and selling below 1,893 level. Good luck! 

Categories
Forex Signals

Overbought Gold Retraces Back – Is It Worth Buying?

During Wednesday’s Asian trading session, the yellow metal prices extended their bullish overnight rally and remained well bids around above the $1,850 level. Let me remind you that the bullion prices surged more than $20 an ounce for their biggest one-day gain in a week. However, the bullish sentiment around the gold prices was being supported by the weaker U.S. dollar as the price of gold is inversely related to the price of the U.S. dollar. 

The losses in the U.S. dollar was mainly tied to the progress toward a massive U.S. government spending bill and COVID-19 relief measures, which undermined demand for the safest assets such as the U.S. dollar. In the meantime, the optimism over the potential vaccine for the highly contagious coronavirus disease is also favouring the market trading sentiment, which also weakening demand for the safe-haven assets. Across the ocean, the intensifying US-China tussle and on-going Brexit uncertainty keep challenging the market’s upbeat mood and provides an additional boost to the safe-haven metal prices. 

Apart from this, the growing market concerns about the continuous surge in new coronavirus cases and the imposition of new restrictions also favouring the yellow-metal bulls. At this time, the yellow metal prices are currently trading at 1,857.76 and consolidating in the range between 1,850.94 – 1,858.37.

Despite the intensified Sino-US tussle, Brexit uncertainty, and worries over the coronavirus (COVID-19) cases, the market trading sentiment keeps its previous-session positive performance and remained well-supportive by the combination of factors. However, the reason could be associated with the latest reports suggesting that the lawmakers stepped again to try and get Covid-19 relief through Congress after several failed attempts. 

As per the latest report, House of Representatives Speaker Nancy Pelosi, a Democrat, hosted Senate Majority Leader Mitch McConnell, a Republican, as well as Senate Democratic leader Chuck Schumer and House Republican leader Kevin McCarthy, gathered to end the long-standing deadlock on the coronavirus relief package at the 7:30 p.m. E.T. (0030 GMT). Wherein, McConnell said that lawmakers would not leave the rooms without a fiscal stimulus deal, which could be attached to the government funding bill.

Apart from this, the reason for the gains in equity markets could be attributed to the optimism over the rollout of vaccines for the highly contagious disease. This, in turn, was seen as one of the key factors that exerted selling pressure on the yellow metal prices. It should be noted that the Moderna is set for getting approval by the U.S. Food and Drug Administration (FDA). Chatters that the FDA approved first fully at-home virus test also favoured the market trading sentiment.

At the USD front, the broad-based U.S. dollar dropped to near two 1/2-year lows as progress toward the massive U.S. government spending bill, and COVID-19 relief measures undermined demand for the safest assets. The U.S. dollar will likely face further losses as the fiscal stimulus has a more substantial trickle-down effect than monetary policy, which usually lifts inflation expectations. Conversely, if the lawmakers fail again to reach an agreement, investors could turn risk-averse, which will be seen as bullish for the USD currency. Moreover, the losses in the U.S. dollar could also be associated with lingering doubts over the U.S. economic recovery from COVID-19. However, the losses in the U.S. dollar kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar. Meanwhile, the U.S. dollar index, which measures the greenback against a bucket of currencies, was last at 90.477, after falling as low as 90.419 on Monday.

In contrast to this, the fears of rising COVID-19 cases in the U.S., Europe, and some of the notable Asian nations continually fueling the fears of renewed lockdowns in several countries. In the meantime, the U.S. new travel restriction over the Chinese Communist Party members and their families and a ban on Xinjiang cotton imports keep challenging the market risk-on mood. The tension between Sino-US further escalated after MSCI showed readiness for delisting 10 Chinese companies from its global investable markets indexes. These negative factors keep challenging the market risk-on tone and become the key factor that helps the gold prices to stay bid.


Daily Support and Resistance

S1 1807.17

S2 1827.65

S3 1840.79

Pivot Point 1848.13

R1 1861.27

R2 1868.61

R3 1889.09

Gold prices traded bullish at 1,860 level, supported over 1,848. It’s the same level that worked as resistance in the past, and now it’s working as a support for gold. On the lower side, the precious metal gold is likely to bounce off over 1,848 level as the 50 EMA is also expected to extend support here. For now, the MACD histograms are smaller but staying in buying zone. Let’s consider taking buying position over 1,848 level today with a stop below 1,845 level. Good luck! 

Categories
Forex Signals

Gold Signal Hit Take Profit – Risk-off Sentiment In Play! 

The yellow metal prices managed to stop its previous day losing streak and took some modest bids around well above the $1,830 level mainly due to the broad-based U.S. dollar weakness, which tends to underpin the gold prices as the price of oil is inversely related to the price of the U.S. dollar. However, the sentiment around the U.S. dollar was being pressured by the optimism over the coronavirus vaccine and the probability of U.S. economic stimulus measures, which urge investors towards riskier currencies and higher-yielding assets against the safe-haven asset.

Across the pond, the downbeat market trading sentiment, driven by the worsening coronavirus (COVID-19) conditions in the U.S. and Europe, also keeps the gold prices well bid. Apart from this, the equity markets’ losses were further bolstered by the US-China tussle, which eventually lends some additional support to the yellow metal prices. On the contrary, the optimism over a possible vaccine and treatment for the highly infectious coronavirus keeps challenging the market risk-off mood, which might cap further upside momentum for the gold prices. The yellow metal prices are currently trading at 1,836.17 and consolidating in the range between 1,833.80 – 1,842.54.

However, the global markets’ sentiment failed to extend its previous-day positive performance and turned sour amid renewed Sino-US tensions and growing coronavirus fears. As per the latest report, America blacklists the Chinese crime boss and some other diplomats from Beijing in an anti-corruption sanction crackdown, which instantly fueled the Sino-US tension and weighed on the market trading sentiment. In addition to this, the U.S. and Europe still not refraining from imposing back-to-back lockdown, which threatening to undermine economic recovery as lockdown restrictions tend to have an instant negative effect on economic activities. In the meantime, the lingering uncertainty over the Brexit trade talks also exerted downside pressure on the global equity market. Thus, all these factors weigh on the market trading sentiment, which could be considered the main factors for the gold on-going bullish moves.

Despite the risk-off-market sentiment, the broad-based U.S. dollar failed to stop its previous session declining streak and remained bearish on the day as doubts persist over the global economic recovery from COVID-19. Furthermore, the U.S. Federal Reserve’s expectations of further monetary easing also weigh on the U.S. dollar. Besides this, the encouraging data from COVID-19 vaccine developers urge investors towards riskier currencies and higher-yielding assets against the safe-haven asset, which eventually leads to losses in the safe-haven U.S. dollar. However, the U.S. dollar losses become the key factor that kept the gold prices higher as the price of oil is inversely related to the price of the U.S. dollar. Meantime, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 91.052.

In contrast, the losses in the global risk sentiment were capped by the latest reports suggesting that the U.S. Food and Drug Administration (FDA) will meet later in the day to talk about BNT162b2, the COVID-19 vaccine co-developed by Pfizer (NYSE: PFE) and BioNTech SE (F:22UAy). While Canada also approved its first COVID-19 vaccine on Wednesday and said inoculations would start next week, which also helps the market sentiment limit its deeper losses.


Daily Support and Resistance

S1 1838.47

S2 1853.58

S3 1861.99

Pivot Point 1868.69

R1 1877.1

R2 1883.8

R3 1898.91

Gold prices dropped amid the greenback’s strength versus another important trading instrument in the nonexistence of any further U.S. fiscal incentive to support the rollback within the coronavirus pandemic. Gold is currently trading at the 1,836 mark, facing immediate resistance at the 1,851 level along with a support level of 1,828 and 1,824. The U.S. Inflation data may help determine further gold trends now; nonetheless, the technical side seems bearish today.

Categories
Forex Signals

Gold Violates Ascending Triangle Pattern – Signal Update

The yellow metal prices succeeded in stopping its previous 3-day losing streak and recovered from monthly lows of $1,764.73 to $1,764.73 level mainly due to the broad-based U.S. dollar weakness, triggered by hopes of more monetary easing measures from the U.S. Federal Reserve. Moreover, the concerns over the economic recovery amid intensifying coronavirus cases also exerted downside pressure on the U.S. dollar, which eventually lend support to the yellow-metal prices as the weaker USD tends to make it cheaper holders of other currencies to purchase the yellow-metal. Across the pond, the mixed market trading sentiment, driven by the negative comments of Fed Chair Jerome Powell and U.S. Treasury Secretary Steve Mnuchin, lend some additional support to the safe-haven metal. In the meantime, the worsening coronavirus (COVID-19) conditions in the U.S. and Europe also keeps the gold prices bullish.

Apart from this, the western tussle with China and uncertainty over the Brexit trade deal also probed the market’s positive performance and contributed to its gains. On the contrary, the optimism over a possible vaccine and treatment for the highly infectious coronavirus keeps challenging the market’s bears, which was seen as one of the key factors that kept the lid on any additional gains in the yellow metal prices. The yellow metal prices are currently trading at 1,786.03 and consolidating in the range between 1,775.87 – 1,788.37.

However, the sentiment around the global markets remains mixed amid stimulus concerns and growing coronavirus fears, as well as the negative comments of the Fed Chair Jerome Powell and U.S. Treasury Secretary Steve Mnuchin also kept the market trading sentiment cautious. It should be noted that the Fed’s Powell and Treasury Secretary Mnuchin both said during Monday’s testimony in front of the Senate Banking Committee that the economy is on the way to recovery but needs additional help to stay on track. In the meantime, Mnuchin urged Congress to use $455 billion from the CARES Act to present the much-needed stimulus to the world’s biggest economy.

Daily Support and Resistance
S1 1735.75
S2 1755.61
S3 1766.35
Pivot Point 1775.48
R1 1786.22
R2 1795.34
R3 1815.21


The precious metal gold is violating the ascending triangle pattern on the four hourly timeframes, extending resistance at the 1,792 level. Over this level, the gold price may head further higher until the 1,818 level; therefore, we have entered the buying trade in gold. Check out the trade plan below.

Entry Price – Buy 1792.46

Stop Loss – 1786.46

Take Profit – 1799.96

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

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

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Crypto Videos

Bitcoin Is Digital Gold & Not Currency: Mike Novagratz!

 

Bitcoin is Digital Gold, Not a Currency – Mike Novogratz

Billionaire investor Mike Novogratz has recently doubled down on a call that Bitcoin serves as digital gold rather than as currency, at least at the moment.
“I don’t think that Bitcoin is going to be used as a currency anytime in the next five years,” said Novogratz, Galaxy Investment Partners’ founder and chief executive officer, in an interview with Bloomberg TV. He added that Bitcoin is currently being used as a store of value, similar to gold, and that it will most likely remain that way for some time.

Crypto fans have argued that Bitcoin can serve as currency as they raised concerns about central banks worldwide printing money during the pandemic and about the potential for inflation to shoot much higher. They point out that central banks are looking into creating CBDC’s, their own digital assets, while China is at the forefront of development as it is already testing its digital yuan.
“And Bitcoin as a gold-like asset, as digital gold is going to keep going higher and higher,” said Novogratz. “As time passes, more and more people are going to want Bitcoin as some portion of their portfolio very soon, if they don’t want it already.”


Bitcoin has rallied more than 93% in 2020, climbing beyond $13,000 and even reaching past $14,000 at one point, just a week after PayPal Holdings Inc. announced that it would allow its customers to buy, sell, hold, and eventually use cryptocurrencies. Bitcoin is currently preparing for a big move as it has recently failed to break the $13,900 resistance and stay above it with confidence.

Novogratz, as well as many other crypto fans, heralded the PayPal news as game-changing, mostly citing PayPal’s large user base that can be used to gain mass adoption. Customers on the platform will have the option to buy, sell and hold several cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, as well as use these cryptocurrencies to shop at the 26 million merchants on its network, including its popular payment app Venmo.

Novogratz forecast that companies including Visa, E*Trade Financial, Mastercard, as well as American Express will follow PayPal’s initiative “within a year” and that they will offer platforms where their merchants will have the option to transact in stablecoins as well as non-stable cryptocurrencies.
“It’s no longer a debate of whether crypto is a thing, if Bitcoin is an asset, or if the blockchain is going to be a part of the financial infrastructure,” said Novogratz. “It’s no longer a matter of if, it’s when, and every single company has to have a plan very soon.”

Categories
Forex Signals

Gold on a Bullish Run – Quick Update on Signal!


Entry Price – Buy 1912.42
Stop Loss – 1906.42
Take Profit – 1919.92
Risk to Reward – 1:1.25
Profit & Loss Per Standard Lot = -$600/ +$750
Profit & Loss Per Micro Lot = -$60/ +$75
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

XAU/USD Concludes Bullish Engulfing Over Intraday Resistance – Signal Update 

The yellow metal gold soared 1% to its highest in a week as traders confidence that a U.S. coronavirus aid package will be announced before the Nov. 3 presidential elections urged the dollar and supported bullion’s appeal as an inflation hedge.

On the contrary, the broad-based U.S. dollar strength has become the factor that helps the currency pair limit its deeper losses. Moreover, the bullish tone around the U.S. dollar was sponsored by Thursday’s released upbeat U.S. jobless data, which showed a larger than expected drop in the initial jobless claims. 


Daily Technical Levels

Support Resistance

1902.14 1923.14

1888.87 1930.87

1881.14 1944.14

Pivot point: 1909.87

Gold is fell dramatically on the bearish side, dropping from the 1,930 mark to the 1,912 level. It’s a support mark that’s prolonged by a previously disrupted symmetric triangle pattern. On the lower side, the 1,912 support level violation may trigger more selling until the 1,897 level today.

Entry Price – Buy 1909.86

Stop Loss – 1903.86

Take Profit – 1915.86

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$600/ +$600

Profit & Loss Per Micro Lot = -$60/ +$60

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

Gold Bounces Off Over Support Level of 1,912 – Time to Go Long! 

The yellow metal gold has traded sharply bearish, dropping from the 1,930 mark to the 1,912 level. Gold gained support at 1,912, the same level that extended support previously after a violation of a symmetric triangle pattern. Gold fell despite a dip in the U.S. stocks as they posted modest losses after a choppy session. The Dow Jones Industrial Average fell 98 points (-0.35%) to 28210, the S&P 500 dropped 7 points (-0.22%) to 3435, and the Nasdaq 100 eased 12 points (-0.11%) to 11,665.

On the forex front, the U.S. dollar widened its weakness against other major currencies amid a looming fiscal stimulus deal. The ICE Dollar Index dropped 0.48% to a 7-week low of 92.61, posting a four-session losing streak. 

The U.S. Federal Reserve said in its Beige Book economic report that all districts have seen continued growth at a moderate pace since the downturn. The central bank added that employment increased across all districts, and prices rose modestly.

Daily Technical Levels

Support Resistance

1902.14 1923.14

1888.87 1930.87

1881.14 1944.14

Pivot point: 1909.87

On the downside, the 1,912 support level’s breakout may trigger further selling unto the 1,897 mark today. Conversely, gold has solid probabilities of jumping off above the 1,912 level to trade bullish unto the 1,930 level. Let’s look for bullish trades over the 1,909 level today.



Entry Price – Sell 1920.15

Stop Loss – 1914.15

Take Profit – 1926.15

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$600/ +$600

Profit & Loss Per Micro Lot = -$60/ +$60

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

 

Categories
Forex Signals

Gold Breakout of Symmetric Triangle Pattern – Brace for Buying!


Entry Price – Buy 1904.88

Stop Loss – 1898.88

Take Profit – 1910.88

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

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

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

Gold Upward Channel Supports Buying in Gold – Brace for Buying! 

The yellow metal prices failed to extend its previous session winning streak and edged lower around $1,919 during the European trading session. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the yellow-metal fresh selling bias. The gains in the U.S. dollar came into existence after the U.S. House Speaker Pelosi rejected Friday’s proposal from Trump, concerning the coronavirus (COVID-19) aid package worth near $1.8 trillion. 

Besides this, the market risk-on sentiment, backed by the hopes of Trump’s health recovery from the COVID-19 infections, also weighed on the yellow metal price. Subsequently, the logic behind the risk-on market sentiment could also be connected with the vaccine’s positive reports and treatment for the extremely infectious coronavirus. On the contrary, the prevalent rise in the COVID-19 cases from the U.K. and Europe and the no-deal Brexit fears keep challenging the market risk-on sentiment, helping the bullion prices limit its deeper losses. Apart from this, the US-China long-lasting tussle also questions the market sentiment upside momentum, which also caps further downside for the gold. AS of writing, the yellow metal prices are currently trading at 1,921.49 and consolidating in the range between 1,919.20 – 1,933.37.

Even though the U.S. House Speaker Nancy Pelosi refused Friday’s U.S. President Donald Trump’s aid package proposal of $1.8 trillion, the market trading sentiment remains positive, possibly due to the positive reports suggesting that the Trump had fully recovered from his bout with COVID-19. These hopes were further fueled after his physician Sean Conley stating that he is no longer an infection risk. This, in turn, boosted the market trading sentiment and undermined the safe-haven metal prices.

Additionally, the market trading sentiment was supported by the hopes of the coronavirus vaccine. Thus the positive tone surrounding the market trading sentiment was seen as one of the key factors that kept the gold prices under pressure. 

Despite the upbeat market sentiment, the broad-based U.S. dollar succeeded in extending its previous-session gains and took further bids on the day amid the stalled stimulus talk that tends to underpin the U.S. dollar. However, the U.S. dollar gains could be short-lived or temporary as concerns over the economic recovery could be stopped because of the resurgence of coronavirus cases and U.S. post-election uncertainty. Although, the U.S. dollar gains kept the gold prices under pressure, as the price of gold is inversely associated with the U.S. dollar price. 

On the contrary, the worries over the resurgence of the coronavirus pandemic have been destroying the support of the global economic improvement, which holds challenging the market trading sentiment and help the yellow-metal prices to limit its deeper losses. As per the latest report, France reported record 27,000 new cases while German infections are surging by the most since April.

At the US-China front, the long-lasting tussle between the United States and China remain on the cards as both parties continuously using very harsh words for each other. This, in turn, added further questions around the market trading sentiment and became the key portion that held the cap on any additional losses in the safe-haven metal prices.


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

The yellow metal gold has risen sharply to trade at 1,928 marks; however, the neutral candle’s closing beneath 1,932 levels implies mixed inclination among traders. Gold is traded over 1,919 levels, and closing of candles beyond 1,919 mark may induce an upward shift in the market. On the upper side, a breach of 1,932 may drive gold higher towards 1,943 and 1,952 marks. In contrast, a bearish breakout of 1,919 levels may lead the gold price towards 1,907 levels today. Mixed bias prevails due to holidays in the United States. Good luck! 

Categories
Forex Signals

Overbought Gold Braces for Bearish Correction – Brace for a Sell! 

The yellow metal prices extended its early-day bullish rally and remained well bids around above the 1,900 level. However, the bullish sentiment around the bullion prices could be associated with the broadly weaker U.S. dollar. The risk-on market sentiment undermined that. Meanwhile, the U.S.’s prevailing political uncertainty also pushed the U.S. dollar down for the second consecutive day. Thus, the U.S. dollar losses could be considered one of the key factors that kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar. Apart from this, the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe also favoring the yellow-metal bulls. 

In the meantime, the U.S. geopolitical tension with the Middle East and China provided an additional boost to the safe-haven metal prices. On the contrary, the optimism over a potential vaccine/treatment for the highly infectious coronavirus and hopes of the further stimulus package keep the market trading sentiment bullish, which could be considered as the key factor that cap further upside momentum for the gold prices. Whereas, the Trump recovery from the COVID-19 infection also offers an additional reason for the market traders to remain hopeful. The yellow metal prices are currently trading at 1,909.87 and consolidating in the range between 1,893.78 – 1,912.96.

Despite the ongoing Sino-US tussle and worries concerning the coronavirus (COVID-19) crisis, the market trading sentiment extended its early-day positive tone and remained supportive by combining factors. As in result, the S&P 500 Futures gain over 0.40%, whereas Japan’s Nikkei slips four points to 23,643 as of writing. Hence, the basis for the risk-on market trading bias could be connected to the positive headlines implying that the discussions between House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the U.S. stimulus package resumed overnight. While President Donald Trump announced that discussions with Congress have resumed despite stopped the coronavirus (COVID-19) stimulus talks until the Nov. 3 presidential election. However, this helped the market’s risk sentiment and undermined the U.S. dollar’s safe-haven demand.

Apart from this, Trump continues to recover from the COVID-19 infection. Whereas the White House physician Sean Conley said that Trump completed his therapy course, and his condition remains stable since returning to the White House on Monday.

Across the ocean, the tensions between the U.S. and China and the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe keep challenging the market risk-on tone. Although the Dragon Nation has recently started facing global pressure against its treatment of Uighur Muslims, 18 Iranian banks were sanctions off-late by the U.S. State Department to curb Tehran’s financial access help further safe-haven yellow metal.

At the coronavirus front, the ongoing rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable tomorrow. As per the latest report, Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid while the calls of closing the pubs and restaurants in the U.K. have been out and clear off-late. Looking forward, the market traders will keep their eyes on updates surrounding the Sino-US tussle and stimulus headlines. Whereas China’s return and Caixin Services PMI will be key to watch. In the meantime, the 


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

Gold has risen distinctly to trade at 1,912 marks, but the neutral candle’s closing below 1,912 levels implies mixed bias amongst traders. Hence, another formation of bearish engulfing or tweezers top pattern may begin bearish correction/retracement in gold. On the downside, gold may gain support at 1,906 and 1,899. Conversely, a bullish breakout of 1,912 stand-level may prolong the buying trend until the 1,919 level.

Entry Price – Sell 1909.74

Stop Loss – 1915.74

Take Profit – 1902.24

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$600/ +$750

Profit & Loss Per Micro Lot = -$60/ +$75

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Categories
Forex Signals

Gold Bullish Bias Continues – Upward Channel Plays! 

Today in the European trading session, the yellow metal prices succeeded in stopping its early-day losing streak and took some modest bids in the last hour near above the 1,915 level. However, the overall bullish tone around the bullion prices could be associated with the broadly weaker U.S. dollar as the gold price is inversely related to the U.S. dollar price. The U.S. dollar was being pressured by the upbeat market mood, as well as, the hopes for the latest U.S. stimulus measures also kept the U.S. dollar under pressure. 

Apart from this, the U.S. political uncertainty ahead of the presidential election on November 3 kept challenging the market risk-on tone and helped the safe-haven metal. On the contrary, the overnight optimism that the U.S. President Donald Trump discharged from the hospital becomes the key factor that kept the lid on any additional gains in the yellow metal prices. The yellow metal prices are currently trading at 1,916.65 and consolidating in the range between 1,906.76 – 1,918.09.

However, the market trading sentiment kept struggling to extend its previous session positive bias and remained supportive by the latest optimism over the U.S. President Donald Trump’s return to the White House following a 3-day hospital stay due to coronavirus infection. Apart from this, the expectations of further stimulus from America also positively impacted the market trading sentiment. These hopes could be considered as one of the key factors that undermining safe-haven assets, including gold.

Across the Pond, the tensions between China and the U.S. keep gaining market attention and challenged the market risk-on tone. The renewed US-China tussle at the US-China front keeps challenging the market risk mood, adding further pessimism around the currency pair. As per the latest report, the Dragon Nation continues criticizing the U.S. ban on TikTok and WeChat at the World Trade Organization (WTO). These conflicting headlines might help the safe-haven metal prices by increasing the safe-haven demand in the market.

Elsewhere, the upbeat US ISM Services PMI data failed to leave any major impact on the market as the U.S. dollar hit a fresh low. At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the low safe-haven demand in the market. Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

The yellow metal gold continues to trade bullish at 1,911 levels. The formation of candles beyond the 1,908 mark is likely to support the gold today. On the 4 hour chart, candles closing below 1,908 mark are expected to drive more selling till 1,900 levels, while the bullish breakout of 1,917 resistance may ascertain the next trend in the market. Although we opened a sell trade during the European session in gold, we soon realized that it’s not worth holding gold as it’s forming a bullish setup. The bullish bias remains solid above 1,908. Good luck! 

Categories
Forex Assets

Bitcoin Vs. Gold: Which is the Better Investment?

Traditionally, gold is considered a protective asset in which money flows when problems arise in stock and currency markets. This can be seen very simply in the example of January 2016, when the collapse of the Shanghai Composite index began, which brought with it the other stock indices. Investors reacted immediately to the recession and transferred their money to gold, literally, in two months the price of gold rose from 1,090 to 1260 US dollars.

A similar situation could be observed on the eve of the referendum in the United Kingdom, as the June quotes went from 1210 to 1350 US dollars. The year 2016 was saturated from the point of view of fundamental factors. Because as soon as the last event of the year, the elections in the United States, was completed, the quotes at the end of the year fell to almost the level of January 2016.

Below are several arguments in favour of investing in gold:

Confidence in gold. Gold in the minds of investors, a priori, is considered a reliable financial instrument. This image was formed in past centuries when gold acted as a monetary equivalent and a means of monetary support. For a long time, gold will be interpreted as a reliable asset.

Limitation of natural resources. Gold reserves are limited, the industry’s constant demand for metal will support the price.

Freedom of Tenure. Physical gold can be inherited or donated to another person.
Liquidity. Gold has the advantage that in any form it presents, it can be converted in a fairly fast way into another type of asset.

Risk diversification. In the years 2008-2010, when the foreign exchange, stock, and commodity markets experienced stagnation, gold increased by more than 80%.

Cryptocurrency: The New Digital Gold

Cryptocurrency quotes behave similarly: on the eve of the referendum in Britain, bitcoin appreciated by more than 50%. After the growth of spring quotes, analysts began to talk seriously about the fact that cryptocurrencies can become for investors the “safe haven”, whose role so far is played by precious metals. Optimistic investors believe blockchain has a future, while the cryptocurrency market is a new investment trend that will replace currency and commodity markets. On April 1, Japan officially recognized Bitcoin as a currency and thus marked the beginning of a new investment instrument.

Below are the arguments in favour of cryptocurrency investments:

Profitability dynamics. In the last 6 months, BTC showed a growth of more than 500%, a similar dynamic of ETH. Despite the strong volatility (5-10% per day), in the medium and long term, the dynamics are upward. Gold in the last 10 years is in the range of 800-1400 US dollars (except for the peak of growth at the time of the mortgage crisis in the US).

Corporate support. In late February 2017, Ethereum Enterprise Alliance was created, which included more than 150 corporations, including CME Group, Mastercard, Intel, Microsoft, J.P.Morgan. This speaks to how corporations see a perspective on cryptocurrency and are ready to support it. This will inevitably be reflected in the future growth of their contributions.

Limited emissions. A limited resource in the face of increased demand generates price growth. Cryptocurrency emission is limited, cryptocurrency does not have a single emission center. Gold production has been out of control for a long time and has not been backed up by a single currency.

Investment facility. The purchase of gold involves a number of difficulties: the certification procedure, the guarantee of physical metal storage conditions, etc. You can win in cryptocurrency in a few mouse clicks.

Anonymity. All transactions with cryptocurrencies are anonymous, while the negotiation of futures or real gold falls under the control of the tax authorities.
Reliability and transparency of investments. The transparency of blockchain technology is being adopted by corporations, building on it applications with their own cryptocurrencies. All transactions of participants are recorded in the system while remaining anonymous. It is impossible to fake transactions, so the popularity of the blockchain (blockchain) and cryptocurrencies will only grow. Gold can be counterfeited, cryptocurrency can’t.

Transition to the era of digital technology. Even the Bretton Woods and Jamaican systems converted gold from a monetary asset into an investment asset. Today, when the world enters the world of digital technologies, it is an electronic cryptocurrency that becomes the focus of investors’ attention.

Availability. Investment in gold is available to investors with relatively large seed capital, and gold can only be purchased through specialist stock exchanges or banks. Anyone with the Internet can invest in cryptocurrencies.

Area of use. Gold has ceased to be a means of payment and is used only as an investment asset. Cryptocurrency, in addition to an investment asset, also acts as a means of payment and can be invested in ETF.

I think these arguments are enough to secure the prospects of cryptocurrency. Gold is slowly falling behind, becoming attractive only to conservative investors, who are used to “keeping” their assets. Already 20-25 years ago the Internet came into the world, changing the consciousness and lifestyles of millions of people, and now comes a new era, the era of the blockchain.

Investing in cryptocurrencies is possible as follows:

-Create a farm and mine or do cloud mining. This option is quite expensive and has a long return.

-Trading on stock exchanges. The disadvantage of this method is the reliability in the purses: the purse and private services can be hacked, a purse on a hard drive is difficult to recover if it fails.

Trading Cryptocurrencies on Forex

The popularity of cryptocurrencies is intensifying the activities of scammers. To date, there are more than 1000 cryptocurrencies (according to the Coin Market Cap website) and some of them are HYIPS that are barely updated every month. So, in conclusion, some tips on how to invest correctly in cryptocurrencies:

-Cryptocurrency is a currency within an application developed on blockchain technology. Analyze the feature of the application, its usefulness, and prospects.

-Many decentralized applications will be developed within Ethereum because the long-term cost of ETH will only grow. Invest in cryptocurrencies, they’ve already proven their solvency.

-A project that offers a fixed income per week (month) – HYIP.

-Do not rush to participate in ICO. There are examples when the value of tokens falls after their first placement.

Conclusion. Gold is gradually losing its role as an attractive investment asset. Blockchain technology is changing the world, creating a new economy, and opening a new era of investment. The future of cryptocurrencies and the one that believes in the latest innovative technologies of the Internet today, and tomorrow it will be possible to multiply its investments several times.

Categories
Forex Signals

Gold Exhibits Massive Volatility as Trump Tests COVID Positive – NFP Ahead! 

The yellow metal prices extended its Thursday’s winning streak and took further bids around well above the $1,900 level, mainly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning the U.S. and China relationships. In the meantime, the COVID-19 and Brexit story’s pessimistic signals also weighed on the market trading sentiment. This, in turn, helped the gold prices to put safe-haven bids.

Furthermore, the latest headlines surrounding U.S. President Donald Trump’s infection of the coronavirus (COVID-19), as well as the U.S. policymakers’ inability to break the coronavirus (COVID-19) stimulus deadlock, provided a further boost to the safe-haven metal prices. On the contrary, the broad-based U.S. dollar strength, backed by the combination of factors, becomes the key factor that capping further upside momentum for the gold. The precious metal prices are currently trading at 1,912.43 and consolidating in the range between 1,889.93 – 1,917.12. However, the bullion traders seem inactive to place any strong position amid Beijing’s Golden Week holidays.

The equity market has been flashing downbeat signals since the day started and ending this week with losses, witnessed by the S&P 500 Futures’ negative performance. However, many downbeat catalysts kept the market trading sentiment under pressure. Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus issues, the market trading sentiment flashing red on the day, which ultimately keeps the safe-haven assets supportive.

At the US-China front, the Sino-China tensions further bolstered after the news that the Americans Senators are pushing for a trade deal with Taiwan over China, which can renew the Sino-American tension. Additionally, the Financial Times (F.T.) spots a massive deployment of military forces in Hong Kong to tame the democracy protest, indicating an acceleration in the Sino-US tension and heavy the market’s mood.

Nevertheless, the grounds for the downbeat trading sentiment could also be attributed to the prevalent coronavirus (COVID-19) woes, which fueled the worries about the global economic recovery. The global death toll has crossed the 1 million mark, and the world is becoming a gloomy place once again. In America, the pandemic has infected more than 7.2 million and killed more than 206,000. Meanwhile, Europe’s worst COVID-19 center, Madrid, is considering fresh lockdown restrictions in the coming days, as well as Moscow’s mayor ordered companies to send at least 30% of their staff home, as many European countries reported records in new infections. This, in turn, exerted downside influence on the market risk tone and contributed to gold gains. On the other hand, the rumors concerning Trump administration employee Hope Hicks’ virus infection and the President’s fears also got infected on the market trading sentiment, which also favors the gold prices. 

The U.S. dollar extended its early-day gains and took further bids on the day due to the Thursday’s upbeat US ADP report, which showed that private-sector employers added 749K new jobs in September. Besides this, the gains in the U.S. dollar was further boosted by the risk-off market sentiment. The Bullish sentiment around the U.S. dollar was further bolstered by the final version of the US GDP print, which showed that the economy declined by 31.4% during the second quarter of 2020 against 31.7% estimated. Apart from this, Chicago PMI beat expectations by a significant margin and surged to 62.4 for September. Looking forward, the traders will keep their eyes on the ongoing drama surrounding the U.S. elections and updates about the U.S. stimulus package. Meanwhile, the U.S. employment data for September will be key to watch on the day.

Daily Support and Resistance

S1 1863.51

S2 1883.52

S3 1894.92

Pivot Point 1903.52

R1 1914.92

R2 1923.53

R3 1943.53

Gold displays excessive volatility as it plunged distinctly from 1,906 mark to 1,890 and then again turned to trade at 1,906. It appears like the traders are bolstering for the high impact of Non-Farm Employment change and from the U.S. economy. Economists are anticipating mixed data; therefore, gold can trade choppy until the data comes out. On the higher side, gold may find resistance at 1,920 upon the breakout of 1,911 level. In contrast, a bearish breakout of 1,900 level can trigger selling unto 1,892. Good luck! 

Categories
Forex Signals

Gold’s Choppy Session Continues – Brace for Breakout Setup!

The yellow metal prices managed to stop its previous session bearish bias and started to gain positive traction around the $1,874 level, mainly due to the prevalent selling bias surrounding the U.S. dollar. That was triggered by the downbeat U.S. data, which fueled the doubts that the U.S. economic recovery could be halt. Apart from this, the upbeat market mood also undermined the demand of the U.S. dollar. Thus, the weaker U.S. dollar could be seen as one of the key factors that helped the dollar-denominated commodity.

On the contrary, the market risk-on sentiment, backed by the optimism over the coronavirus (COVID-19) vaccine/treatment and the hopes of the COVID-19 stimulus measures package, becomes the key factor that kept the lid on any additional gains in the gold prices. Across the pond, the market trading sentiment was relatively unaffected by the Sino-American tussle and virus woes, which might lend some further support to the safe-haven metal. The yellow metal prices are currently trading at 1,874.13 and consolidating in the range between 1,861.93 – 1,875.20.

The renewed optimism over a possible vaccine for the highly infectious coronavirus pandemic boosted the market risk tone on the day. These hopes were fueled after Novavax Inc started a clinical late-stage trial of the coronavirus vaccine in the U.K. The experimental vaccine is produced on partnership terms with the government’s Vaccines Taskforce. This, in turn, weakened demand for safe-haven metal and might keep a lid on any extra gains for the yellow metal.

Moreover, the risk-on sentiment was further bolstered by the latest headlines suggesting that the Democrats in the U.S. House of Representatives stated that they are working on a $2.2 trillion COVID-19 stimulus package that could be voted on next week. Besides this, there is also a suggestion that House of Representatives Speaker Nancy Pelosi and U.S. Treasury Secretary Steven Mnuchin will likely resume stalled stimulus talks.

As in result, the broad-based U.S. dollar failed to maintain its previous day gains and dopped on the day mainly due to the risk-on market sentiment. Moreover, the U.S. dollar losses could also be attributed to the downbeat U.S. unemployment data. However, the U.S. dollar losses kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar.

Across the ocean, the fears of no-deal Brexit and the Sino-American tussle keep challenging the positive market tone, which might help the yellow-metal prices. At the US-China front, Sino-US’s tensions picked up further pace after the US Justice Department urges judge to allow Govt to ban WeChat from app stores. As per the latest report, the US Justice Department early Friday urged a San Francisco federal judge to permit the government to prohibit Apple Inc and Google from offering WeChat for download in the app store. At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries that the global economic recovery could be halt.


Daily Support and Resistance
S1 1792.71
S2 1832.06
S3 1847.65
Pivot Point 1871.4
R1 1887
R2 1910.75
R3 1950.1

The yellow metal gold extends to trades choppy on the back of thin fundamentals in the market. The Doji candle formation on the daily timeframe is expected to encourage upward movement in the market unto the 23.6 Fibonacci retracement level of 1,877. On the upward side, the bullish violation of 1,877 marks may lead to a 38.2% Fibo level of 1,895. Beneath 1,877, the gold price can sink until 1,858 and 1,846 level. Neutral bias controls in the market today. Good luck!

Categories
Forex Market Analysis

Gold Still Under Bearish Pressure

Overview

Gold price eases over 4% during this week, dragged by the U.S. Dollar strength, which rallies nearly 1.5%. Considering the short-term structure observed on both the market sentiment and the Elliott wave outlook, the precious metal could experience further declines during the coming trading sessions.

Market Sentiment Overview

The price of Gold continues being dominated by selling pressure this week, driven by the U.S. Dollar strength, accumulating losses of over 4% in the week. However, during this year, the precious metal has advanced over 24% (YTD). 

The market sentiment shown in the weekly chart reveals a decrease in the bullish bias of market participants, who have shifted from extreme bullish sentiment until the past week to a bullish bias. Likewise, considering that the price action continues above the 26-week moving average, the mid-term trend continues being bullish.

Likewise, the wide-range weekly candle, still in progress, reveals the current control by the bearish-side participants. However, the rebound at $1,848.84 per ounce developed during the trading session on Thursday 24th, leads us to observe that the yellow metal could have found a short-term support level.

On the other hand, according to the latest reading unveiled in the Commitment of Traders Report, where the speculative net positioning reached 240,977 positions, reveals that the big participants still maintain their bias on the bullish side. Consequently, a massive sell-off could correspond mainly to the take-profit activity rather than to a reversal of the upward trend.

The volatility presented in the following daily chart corresponds to the Gold Volatility Index (GVZ) and shows the movement consolidating into a flag pattern. At the same time, the internal structure reveals an upward pressure, which is confirmed by its last close above the 60-day moving average. This the market context leads us to expect new increments in the precious metal volatility, and with it, further declines in the price of gold.

Under the market sentiment perspective, the big picture of the precious metal reveals that the long-term trend remains mostly bullish. However, the short-term bias suggests further declines.

Elliott Wave Outlook

The gold price on its 4-hour chart shows the progress of a corrective sequence, which began on August 06th when the price reached its all-time high at $2,075.14 per ounce. Once this record high was reached, the precious metal found sellers which currently are maintaining the price under pressure.

As said, after Gold was controlled by the sellers, the price began a corrective structure made by three waves of Minuette degree labeled in blue, which is currently developing its wave (c). In the figure, we distinguish that once the price closed below the base-line b-d of the triangle pattern, the yellow metal confirmed this wave (c) that remains in progress. The internal structure of the wave (c) unveils that Gold advances in its third wave of Subminuette degree identified in green.

According to the Elliott wave theory, the wave (c) follows an internal structure formed by five segments. In the previous chart, we see that the price moves in its wave iii labeled in green. Consequently, the precious metal should develop a consolidation sequence before dropping to a new lower low with a potential target zone between $1,802.56 and $1,744.76 per ounce.

Finally, the invalidation level of the current bearish scenario locates at $1,973.43 per ounce.

Categories
Forex Signals

Gold Price Forecast, Sept 23 – Bearish Bias Dominates Amid Stronger USD! 

Today in the European trading session, the yellow metal prices failed to stop its early-day losing streak and still gaining negative traction around the $1,885 level, having hit the low of $1,873 level on the day. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the bullion losses. Hence, the U.S. dollar was supported by a strong U.S. housing market against rising global COVID-19 cases. 

Apart from this, the bullish bias in the U.S. dollar was further bolstered by the U.S. stimulus package’s hopes. Across the pond, the on-going progress around the S&P 500 Futures, backed by the hopes of the COVID-19 vaccine and further U.S. stimulus, also weighed on the yellow metal price. Elsewhere, the reason behind the upbeat S&P 500 Futures could also be associated with U.S. positive data, which tends to fuel the hopes of the U.S. economic recovery. 

On the contrary, the geopolitical tensions between China and some notable countries like the U.S. and U.K. became the key factor that helped the yellow-metal prices limit its deeper losses. The coronavirus (COVID-19) crisis also keeps challenging the market upbeat trading sentiment, which might give some support to the yellow metal prices.

Despite the concerns about the 2nd-round of coronavirus infections, the market trading sentiment has been flashing green since the day started. Thus, the on-going positive tone around the equity market tends to undermine the safe-haven metal. However, the market sentiment was being supported by the strong U.S. housing market. 

Detail suggested that the existing home sales rose to 6 million in August, the highest level in nearly 14 years. Moreover, the market risk sentiment was further bolstered by the Fed Chair Jerome Powell’s measured comments. He said on Tuesday that it might be possible for the Fed to raise interest rates before inflation starts to average 2%. This, in turn, underpinned the safe-haven U.S. dollar and contributed to the currency pair. 

Moreover, the market trading sentiment was further bolstered by the reports suggesting that the U.S. House of Representatives has announced a bill to support government spending ahead of a shutdown, which also boosted the Us dollar and contributed to the gold prices losses.

As a result, the broad-based U.S. dollar managed to maintain its previous session gains and still flashed green on the day amid upbeat U.S. data and pullback in technology shares. However, the U.S. dollar gains seem rather unaffected by the upbeat market tone and held its gaining streak, at least for now. Thus, the U.S. dollar gains kept the gold prices under pressure as the price of gold is negatively related to the U.S. dollar price. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.18% to 94.162 by 9:38 PM ET (1:38 AM GMT). Furthermore, the second round of coronavirus infections keeps challenging the market risk tone, which might help the gold prices limit its deeper losses. As per the latest report, the U.S. has crossed 200,000 COVID-19 deaths tolls, and multiple European countries are imposing lockdown restrictions. Meanwhile, the U.K. set stricter measures on Tuesday, suggesting that the previous lockdown may need to be reimposed. 


Looking forward, the market traders will keep their eyes on the preliminary readings of September month PMIs from the U.K., Europe, and the U.S. for fresh direction. Meanwhile, the USD price dynamics and coronavirus headlines will be key to watch. Across the pond, the Fed Chair Jerome Powell’s second day of the congressional testimony will also b key to watch.

Daily Support and Resistance

S1 1858.21

S2 1881.21

S3 1890.7

Pivot Point 1904.2

R1 1913.7

R2 1927.2

R3 1950.19

Gold price extends to trade distinctly bearish at 1,890 level, disrupting the triple bottom support level of 1,903. On the lower side, gold may sink further until the next support level of 1,877 and 1,862. At the same time, resistance holds around 1,903 and 1,919 level. The bearish bias remains dominant today. Good luck! 

Categories
Crypto Guides

Could Bitcoin Ever Beat Gold & Get The Safe-Haven Status?

Introduction

The traditional investors from the last few months are trying to understand the unprecedented financial system. The world is suffering from economic uncertainties, where 20% of the US workforce lost their jobs due to the COVID pandemic situation. At the same time, the precious metal “gold” hit an all-time high in this 2020 summer and stayed on a hike for a long time ever since.

The gold rush in the market might be due to various reasons – US dollar fall, US-China deteriorating relations, and general global economic crisis. Also, cryptocurrency investors advocated that Bitcoin perhaps can beat gold as the safe-haven, but researchers pointed out the fact that BTC is not so performing. As with the stock market fall, the market worth of Bitcoin was also down – which means that BTC can’t be classed as a safe-haven asset.

Bitcoin and Gold Market Risk

Bitcoin and gold have emerged as a leading investment unit to stabilize the economic downfall. In the finance industry, there is no guarantee for returns on investment, so there is always high risk. It’s not true that the value of gold will always rise because, in 2012-2015, it was dropped by $20,000 per ounce. Similarly, BTC value bounces up and down. Gold is not so volatile as Bitcoin currency. Gold is acting as a safe-haven from the last 100 years, and bitcoin is in the market from the last decade.

Can Bitcoin be called a Safe-Haven Asset?

Amid all economic crises, bitcoin price hardly reached $9,011, and that too, with a high risk. So, it can’t be considered as a safe-haven asset due to the following two reasons:

Reason 1

The Bitcoin volume in the market is so small to validate the concept of the safe-haven asset. A safe-haven in the traditional market is the asset whose price rises typically. When there is any risk, the investors simply shift their money from risky assets to a safe one to avoid the loss and to retain their investment value.

In the traditional market, Bitcoin’s share is less than $200 billion US dollar, which is not enough to perform as a safe-haven asset. It lacks federal regulations for transactions, and there is a high risk of scams in the Bitcoin cryptocurrency industry. That’s why the Securities and Exchange Commission also rejected the Bitcoin ETF proposal.

Reason 2

Bitcoin can’t be accessed or used in the environment, having no internet connection. In extreme places, you may be cut-off from the cryptocurrency exchange and Bitcoin traders due to limited internet connectivity. For example, due to any major strikes, most of the time, the government shut down the internet accessibility to slow down the protests and all.

In the meantime, due to no internet connection bitcoin wallet and exchange system get hampered instantly. Therefore, bitcoin can’t be used in the emergency situation, so it can’t be considered as an alternative currency or safe-haven asset.

Conclusion

Gold is a risky asset because of sharp falls, and bitcoin, too, has speculative risk factors. In the case of the safe-haven concept, gold is already declared as a safe-haven asset in the traditional market, while Bitcoin is battling for the title. A wide range of economic forces across the world doesn’t impact its value, as BTC trade executes independently. Despite the global recession and high unemployment, BTC is doing great in the market. But for now, we believe that this is not enough to qualify as a safe-haven asset.

Categories
Forex Signals

Gold Price Forecast, Sept 22 – Choppy Session in Play! 

The safe-haven-metal prices failed to stop its previous session losing streak and catch further offers near below $1,900 level, mainly due to the broad-based U.S. dollar strength triggered by the risk-off market sentiment. Thus, the broad-based U.S. dollar strength from the multi-month low could be recognized as one of the main causes behind the yellow-metal latest weakness as the market’s risk-off wave tend to prefer the U.S. dollar above all, which in turn has an inverse correlation with the safe-haven yellow metal. The losses in the safe-haven U.S. dollar could be short-lived or temporary as the second wave of coronavirus continuously picks up the pace, which fuels worries over the U.S. economic recovery. 

On the contrary, the market risk-off sentiment, triggered by the reappearance of coronavirus cases, becomes key factors that kept a check on any additional losses in the gold. Apart from this, the on-going US-China tussle over the South China Sea might also help the gold prices to limit its deeper losses. As of writing, the yellow metal prices are currently trading at 1,901.96 and consolidates in the range between the 1,894.90 – 1,919.90.

As we all know, the market risk tone has been sour since the day started, and the reason could be associated with the long-lasting US-China tussle and growing market worries about the ever-increasing number of coronavirus cases. Elsewhere, the risk-off market sentiment was further bolstered by the long-lasting tussle between the United States and China, which became further soured after U.S. Secretary of State Mike Pompeo took helps from France, Germany, and the U.K. to reject China’s claims of the South China Sea at the United Nations (U.N.). This eventually placed a downside pressure on the market trading sentiment and underpinned the safe-haven assets. 

Apart from the Sino-American tussle, the expectations that the much-awaited U.S. phase 4 fiscal package will also be delayed favored the risk-off market. The U.S. dollar succeeded in stopping its early-day losses and took the safe-haven bids on the day amid market risk-off sentiment. However, the U.S. dollar gains could be short-lived or temporary due to the worries that the economic growth in the U.S. could be stopped because of the reappearance of coronavirus cases. However, the U.S. dollar gains kept the gold prices under pressure as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, edged higher 0.04% to 93.602 by 9:48 PM ET (1:48 AM GMT).

Looking forward, the market players will keep their eyes on the comments from the U.S. Federal Reserve Chairman Jerome Powell and other Fed policymakers. Meanwhile, the on-going drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose its importance. Given the holiday in Japan, due to the Autumnal Equinox Day, coupled with an absence of major data/events, the USD moves and coronavirus headline will be key to watch.


Daily Support and Resistance

S1 1920.66

S2 1941.35

S3 1950.45

Pivot Point 1962.04

R1 1971.14

R2 1982.73

R3 2003.42

Gold prices dropped distinctly from 1,935 mark to 1,888 level in the wake of the hawkish Fed Chair Jerome Powell’s speech. The precious metal is currently jumping off to achieve 38.2% Fibonacci retracement at 1,914, and beyond this, the following resistance lingers at 1,921 and 1,930. Let’s keep a focus on 1,907 today as gold can trade bullish beyond this and bearish beneath the same level today. Good luck! 

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Forex Signals

Gold – Breakdown Suggests Further Declines

Description

Gold prices in its 2-hour timeframe remain moving in a consolidation structure identified as a triangle pattern. At the same time, the price action reveals a breakdown in its internal sequence, suggesting the likelihood of additional drops.

According to the Elliott wave theory, the price advances in a triangle pattern, which consolidates the first downward movement that began when the precious metal topped at $2,075.14 per ounce on August 07th. With the short-term ascending trendline between waves d and e of Subminuette degree identified in green, the yellow metal unveiled the completion of wave e. It opened the possibility of a new bearish leg of the upper degree.

On the other hand, the RSI oscillator shows a breakdown that pierced below level 40 and consolidated in 41.4, confirming the intraday breakdown developed by the precious metal and increasing the downward move’s likelihood.

In a conservative scenario, the Gold prices could decline toward the $1,925.93 per ounce, which corresponds to the last swing of September 09th. The invalidation level of our bearish scenario will occur if the price soars over $1,952.93 per ounce.

Chart

Trading Plan Summary

  • Entry Level: $1,943.93 per ounce
  • Protective Stop: $1,952.93 per ounce
  • Profit Target: $1,925.17 per ounce
  • Risk/Reward Ratio: 2.08
  • Position Size: 0.01 lot per $1,000 in trading account.

 

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Forex Signals

Gold Choppy Session Continues – Quick Buy Limit!  

The yellow metal prices failed to maintain its previous-day gaining streak and edged lower to 1,940 level due to the broad-based U.S. dollar strength, backed by the better-than-expected U.S. unemployment figures. Apart from this, the central bank said that it expects the U.S. economic recovery from the coronavirus crisis to gather pace, boosting the U.S. dollar sentiment.

However, the U.S. dollar upticks pushed the bullion prices down in Asian morning trade, although the U.S. Federal Reserve also stated yesterday that it was keeping interest rates close to zero until inflation increases to over 2%. On the contrary, the previous market optimism over the coronavirus (COVID-19) vaccine/treatment was recently overshadowed by the latest mixed signals regarding the coronavirus (COVID-19) vaccine and U.S. aid package. This, in turn, the market trading sentiment turned sour, which might help the gold prices to limit its deeper losses. 

It is worth recalling that the Federal Open Market Committee (FOMC) upwardly revised short-term economic forecasts. Meanwhile, he also repeated their promise to do everything necessary. The U.S. central bank also holds the Average Inflation Targeting (AIT) program while displaying a readiness to keep the easy monetary policy even if the inflation shoots above the 2.0% target. 

At the USD front, the broad-based U.S. dollar extended its early bullish trend on the day amid mixed sentiment in the market. Moreover, the foresees unemployment falling faster than the central bank expected in June, also helped the greenback to put the fresh bids. Let me remind, the Us dollar saw losses in the wake of the Fed’s comments and disappointing U.S. retail sales data but gradually erased the losses after the Fed hinted economic growth to improve from the COVID-19. However, the modest surge in the greenback kept the gold prices under pressure as gold price is inversely related to the U.S. dollar price. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of other currencies was up 0.45% to 93.543 by 12:24 AM ET (5:24 AM GMT).

However, the equity market has started to flash red since the Asian session started. Hence, the reason for the risk-off market sentiment could be the deadlock over the U.S. Congress proceeding over the much-awaited aid package. Although the U.S. President Donald Trump recently indicated the solution to arrive soon, House Speaker Nancy Pelosi’s rejection of holding the votes on a package around $1.5 trillion shows that the Democrats are in no mood to relinquish controls. This, in turn, undermined the market trading sentiment and helped the gold prices to limit its deeper losses.

The market trading sentiment was further bolstered by the fresh U.S. President Donald Trump’s warnings to the World Trade Organization for its favor to China. This, in turn, might recall the trade war concerns that have been silent off-late. Across the pond, the COVID-19 outbreak continues to rise, which keep dampening the global economic outlook.

On the contrary, the market trading sentiment was rather unaffected by the renewed optimism over the coronavirus (COVID-19) vaccine/treatment. Nevertheless, U.S. President Donald Trump said that late-October would distribute the COVID-19 vaccine, and policymakers in the U.K., China, and Russia also join the upbeat tone about finding the cure of the pandemic. This could help the market trading sentiment to limit its losses.


Looking ahead, the market players will keep their eyes on the busy economic calendar for near-term moves—the U.S. Initial Jobless Claims and the U.S. housing data will be key to watch. Meanwhile, the updates surrounding the fresh Sino-US tussle and the coronavirus (COVID-19) updates could not lose their importance.

Gold prices slipped dramatically from 1,959 level to the 1,940 mark operating above the 1,936 support range. The triple bottom pattern on the hourly chart is expected to support gold prices now at 1,936. Beyond this, bullish sentiment can pull gold price higher until the 1,949 level, and over this, the 1,958 level may serve as resistance. Breakout of 1,936 mark can prolong selling bias unto 1,924 area today. Good luck! 

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Forex Signals

Gold Extend Previous Day Bullish Rally – Risk-On Market Sentiment!

During Tuesday’s Asian trading session, the yellow metal prices extended its previous day winning streak and edged higher on the 2nd-day of a new week. However, the bullish sentiment around the yellow-metal prices has remained supportive by the prevalent selling bias surrounding the U.S. dollar. The losses in the U.S. dollar was seen as one of the key factors that helped the dollar-denominated commodity. Hence, the U.S. dollar was being pressurized by the doubts over the U.S. fiscal stimulus measures. Besides, the upbeat market mood, backed by the combination of factors, also undermined the U.S. dollar and contributed to the bullion gains. It is worth mentioning that the market trading sentiment was supported by the news suggesting that the Phase III clinical trial went very well, and the vaccine could be ready by November/December.

Meanwhile, the market risk sentiment got a lift after the upbeat Chinese activity data, which pushed the S&P 500 futures back on the bids to test 3380 levels. As in result, the upbeat market tone becomes the key factor that kept the lid on any additional gains in the safe-haven metal. Across the pond, the market trading sentiment was relatively unaffected by the Sino-American tussle, which recently picked up pace after the Trump administration banned certain Chinese products. At this time, the yellow metal prices are currently trading at 1,967.49 and consolidating in the range between 1,955.22 – 1,967.61.

While discussing the positive side of the story, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. The hopes of the vaccine further boosted after the Chinese CDC chief biosafety expert tweeted that the Ordinary Chinese could take the #COVID19 vaccine as early as November or December as the phase III clinical trial went very smoothly. Meanwhile, the Pfizer’s optimism to provide the pandemic’s cure during this year to the U.S. also boosted the hopes of the vaccine. This, in turn, weakened demand for safe-haven metal and might keep a lid on any extra gains for the yellow metal.

Moreover, the risk-on sentiment was further bolstered by the latest headlines suggesting that the Customs Tariff Commission of China is considering extending tariff exemption on some of the U.S. goods imports. In the meantime, China’s Finance Ministry stated that the tariff exemption extension applies to products from the U.S. such as lubricants. Apart from this, the upbeat Chinese macro numbers also exerted a positive impact on market trading sentiment. At the data front, China’s August Retail Sales YoY, the number came in at 0.5% versus. 0% exp and -1.1% last, with Industrial Output YoY at +5.6% and +5.1% exp and +4.8% last. In the meantime, the Fixed Asset Investment YoY unchanged at -0.3% vs -0.4% expected and -1.6% last. At the same time, China’s January-August Private Sector Fixed Asst Investment dropped by 2.8% YoY.

Additionally, the reason for the upbeat market tone could also be associated with the positive news suggesting that the Trump administration quietly eased travel warnings towards China and Hong Kong. However, this news recently pleased the market risk tone, which tends to urge investors to invest their money into riskier assets.

Across the ocean, the fears of no-deal Brexit and the Sino-American tussle keep challenging the positive market tone, which might help the yellow-metal prices. At the US-China front, the tensions between Sino-US picked up further pace after the U.S. blocks Chinese goods made with forced labor. As per the latest report, the Trump administration has banned the import of certain apparel and computer parts from China, while saying forced Muslim laborers make them from the Xinjiang region.

At the Brexit front, the recent victory of the U.K.’s ruling Conservative Party-backed Internal Market Bill (IMB) into the House of Commons also keeps questioning the risk-on market sentiment. Although, the bill defied the opposition Labour Party’s motion for blockage but is yet to be announced as a law.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable prospect. The World Health Organization (WHO) recorded a record single-day hike in COVID-19 cases by 307,930 in 24 hours during this weekend.


Looking ahead, the market traders will keep their eyes on updates surrounding the Brexit, virus, and US-CHina tussle. Meanwhile, the U.S. Industrial Production m/m and Import Prices m/m will also be key to watch. The yellow metal gold traded distinctly bullish amid softer U.S. dollar to trade at 1,968 mark. On the upper side, the gold may extend trading upward unto 1,985 resistance. On the selling side, the XAU/USD may gain support at 1,963 and 1,955 mark. Overall, the trading bias appears to be bullish.

Entry Price – Buy 1968.14
Stop Loss – 1962.14
Take Profit – 1975.64
Risk to Reward – 1:1.25
Profit & Loss Per Standard Lot = -$600/ +$750
Profit & Loss Per Micro Lot = -$60/ +$75
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Forex Signals

Gold’s Choppy Session in Play – Brace for Selling Signal! 

During Monday’s early Asian trading session, the yellow metal prices extended its halt its overnight bearish bias and gathered some pace around above the 1,950 level. The U.S. tech stocks continue to fall, led once again by NASDAQ, which tends to help the gold prices to stay bid. However, the weaker bias around the U.S. dollar was mostly driven by the lack of safe-haven demand. Hence, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials, after stopping it during the last week. In the meantime, the risk-on sentiment was further bolstered by the comments from the European Central Bank (ECB) policymakers suggesting further easy money days. These positive headlines became the key factor that kept the lid on any further yellow metal gains. The market players did not give any major heed to the Sino-US on-going tussle and Brexit looming worries across the pond. 

The yellow metal price is trading at 1,946.49 and consolidating in the range between 1,937.40 – 1,951.72. The market traders seem cautious to place any strong position ahead of the U.S. Federal Reserve’s policy meeting, which is scheduled to take place on Wednesday. Despite the fears of no-deal Brexit and the Sino-American tussle, not to forget the record single-day increase in COVID-19 cases, the market trading sentiment extended its early-day positive tone and remained supportive by the weekend positive headlines suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials. The S&P 500 Futures add 0.73% to 3,347 as of now. Considering the risk-barometers’ positive tone, the market’s safe-haven demand undermined, eventually weighing on safe-haven metal prices.

The reasons for the risk-on market trading sentiment could be attributed to the positive headlines concerning the coronavirus vaccine. The AstraZeneca showed readiness for resuming its vaccine trials after a brief “routine” pause, while the Pfizer is confident about getting the cure of the pandemic by the year’s end. Furthermore, the U.S. Consumer Price Index (CPI) data flashed another positive signal, after the Producer Price Index (PPI), for the Federal Reserve policymakers to meet this week. This exerted an extra positive impact on the market trading sentiment. Moreover, the market trading sentiment was further bolstered by the latest positive report that Libya’s oil industry will reopen after almost 8-months of a stop to exports.  

The fears of no-deal Brexit and the Sino-American tussle keep challenging the positive market tone across the ocean, which might help the yellow-metal prices. At the US-China front, the tensions between Sino-US remain on the card amid China’s retaliation to the U.S. sanctions on diplomats. Meanwhile, the looming decision on TikTok also keeps the world’s two largest economies at the slippery track.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable future. The World Health Organization (WHO) recorded a record single-day hike in COVID-19 cases by 307,930 in 24 hours. Apart from this, Politico’s news that Iran’s preparing to take revenge for their soldier Qassem Soleimani adds pressure to the market trading sentiment. Furthermore, New Zealand’s extension of lockdown restrictions until September 21 with stricter conditions in Auckland also ap further gains in the equity market. This, in turn, might helps the safe-heaven gold prices.

On the flip side, the news that Tropical Storm Sally is expected to become a hurricane on Monday may affect a region stretching from Morgan City, Louisiana, to Ocean Springs, Mississippi. Thus, these gloomy headlines might support the gold prices by undermining the market trading sentiment. Looking ahead, the market traders will keep their eyes on updates surrounding the Brexit, virus, and US-CHina tussle. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting scheduled to take place on Wednesday.


Gold is trading at 1947 mark, meeting the next resistance at 1,950. On the 4 hour chart, XAU/USD has set a double top pattern that’s expected to drive gold prices lower unto 1,942 mark. Overall trading in gold is sideways in between 1,950 to 1,942 mark though, the destruction of this area may drive additional moves. On the higher side, resistance lingers at 1,958 and 1,966 while support lingers at 1,937 level. 

Entry Price – Sell 1947.44 

Stop Loss – 1953.44

Take Profit – 1939.94

Risk to Reward – 1:1.25

Profit & Loss Per Standard Lot = -$600/ +$750

Profit & Loss Per Micro Lot = -$60/ +$75

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

Gold Failed to Maintain Overnight Bullish Run-Up – Quick Update!

The yellow metal prices failed to extend its bullish overnight rally and instantly dropped below the $1,940 level after hitting 9-day high overnight. However, the overnight gains could be attributed to the report suggesting the second week of U.S. stock selloff and fall in the U.S. dollar. Still, the gains in the precious metals were short-lived as the market trading sentiment turned positive.

Thus, the market trading sentiment was supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus, as well as Tokyo’s optimism over easing lockdown restriction also favor the market trading sentiment, which ultimately undermined the safe-haven metal.

On the contrary, the coronavirus (COVID-19) woes and the US-China tussle keep challenging the market risk-on mood, which capped further downside momentum for the bullion. Elsewhere, the broad-based U.S. dollar weakness could help the bullion prices to limit its deeper losses. The yellow metal is trading at 1,941.80 and consolidating in the range between 1,937.41 – 1,949.35.

It is worth recalling that the market trading sentiment is rather unaffected by the on-going uncertainties over the much-awaited fiscal package, fueling worries over the U.S. economic recovery. Moreover, the market players are also ignoring President Donald Trump’s hard stand against TikTok and the recent cancellation of over 1,000 visas from Beijing. Besides, the fears of a no-Brexit deal also failed to hurt the market trading sentiment. As in result, the futures tied to the S&P 500 are adding 0.57%.

However, the market trading tone was being supported by optimism over a possible vaccine and treatment for the coronavirus. After the Goldman Sachs, these hopes fueled that Pfizer’s candidate said that Pfizer’s candidate vaccine could be approved as early as October. In the meantime, the news of receding tensions between India and China and the positive news over the receding coronavirus (COVID-19) led activity restrictions in Tokyo also boosted the market trading sentiment. This in, turn, undermined the safe-haven metal.

Moreover, the latest record recovery in the BSI Large Manufacturing Conditions Index for the third quarter (Q3), from -44.2 expected and -52.3 before +0.1, citing that the Japanese economy is set for a strong recovery, also favor the market risk tone and kept the yellow-metal prices under pressure.

As in result, the broad-based U.S. dollar failed to gain any positive traction and took the offer on the day as doubts persist over the global economic recovery from the U.S. stock selloff witnessed that selloff. As well as the risk-on market sentiment also weighed on the American currency. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.10% to 93.295 by 9:40 PM ET (2:40 AM GMT).

At the coronavirus front, the global COVID-19 cases continue to increase, which fade hopes of a faster economic recovery. As per the latest statement, there are around 28 million COVID-19 cases globally as of September 11, according to Johns Hopkins University data. These fears might urge traders to invest in the safe-haven asset like gold.

Looking ahead, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) for August, which is expected 1.2% against 1.0% YoY. Moreover, the updates surrounding the Sino-US tussle and Brexit-related headline could not lose their importance.


The precious metal gold has disrupted the triple bottom support level of 1,942 level and it continues to trade below this level. Gold may find an immediate support at 1,937 level and bearish breakout of this level can extend selling bias until 1,921. Conversely, the bullish crossover of 1,942 level may drive buying trend until 1,950 level and above this, the immediate target is expected to be 1,965 level. Let’s brace for the U.S. Inflation data to encourage further trend in gold. Good luck!

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Forex Signals

Gold’s Upward Channel Supports Buying – Checkout Buying Signal

The yellow metal prices extended its bullish overnight rally and still taking bid around above the 1,950 level. Let me remind you that the fall in U.S. tech stocks initially boosted the safe-haven metal’s rise during the previous session, pulling it up from a low of $1,927.20 to an overnight high of $1,959.35. 

The reason for the on-going bullish tone around the gold prices could also be associated with the broadly weaker U.S. dollar. However, the weaker tone around the U.S. dollar was mainly driven by the trader’s cautious sentiment before of the European Central Bank (ECB) meeting. Therefore, the market trading sentiment was being supported by the news that TikTok parent’s request to not push for the entire sale to the U.S. 

Furthermore, the U.S. State Department’s keeps doors open for Chinese students who don’t support their leading national party, after over 1,000 visa rejection. This also exerted a positive impact on the market trading sentiment and became the key events that kept the pressure on any additional gains in the yellow metal. The yellow metal prices are currently trading at 1,947.58 and consolidating in the range between 1,943.76 – 1,950.78. As we know, the market sentiment remains mostly positive, while the lack of catalysts and the pre-ECB attentiveness could also be considered as reasons for the recent gold pullback.

Despite the on-going Sino-American tussle and worries concerning the U.S. stimulus package, the market trading sentiment extended its previous session positive tone. It remained supportive of the combination of factors. As in result, the S&P 500 Futures print 0.30% gains to 3,404 by the press time. Hence, the reason for the risk-on market trading sentiment could be attributed to the positive headlines concerning TikTok. It should be noted that the TikTok’s parent Bytedance is in talks with the U.S. to avoid the full sale of the company. This eventually trimmed the safe-haven demand in the market. Also supporting the market tone could be the news that the U.S. showing willingness to keep doors open for Chinese students, those who don’t support their leading national party, after over 1,000 visa rejection. Apart from this, the recent news that Tokyo is considering easing virus-led lockdown also favors market trading sentiment.  

At the USD front, the broad-based U.S. dollar failed to maintain its previous day gaining streak and dopped on the day mainly due to the risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with cautious sentiment ahead of the European Central Bank (ECB) meeting taking place later in the day. However, the U.S. dollar losses kept the gold prices higher as the price of gold is negatively related to the price of the U.S. dollar. While , the U.S. Dollar Index that measures the greenback against a bucket of other currencies dropped by 0.10% to 93.165 by 11:54 PM ET (4:54 AM GMT).

Across the Pond, the tensions between China and the U.S., and India keep gaining market attention and challenged the market risk-on tone. The tensions between Sino-US were further fueled after President US Trump warned to “stand tough against the Dragon Nation” if he is re-elected. Elsewhere, the tussle between China and India still on in the background, while uncertainty over the Brexit deal keeps challenging the market risk-on sentiment, which might help further the safe-haven yellow metal.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic forecast for the foreseeable future. As per the latest report, there are approximately 28 million COVID-19 cases globally as of September 10. However, these fears keep hurt the positive trading sentiment. 

Looking ahead, the market traders will keep their eyes on updates surrounding the Sino-US tussle, as well as Brexit related headline. Simultaneously, the market traders seem cautious ahead of the ECB meeting as they await a strong positive message from the ECB, which is less likely, to keep the recent rise.


The yellow metal gold has disrupted the resistance mark of 1,935 level, and presently it’s meeting resistance at the 1,949 mark. A bullish violation of the 1,949 mark may trigger buying until the 1,958 level on the upper side. Whereas, the support extends to operate at 1,935 and 1,922. The U.S. Unemployment Claims and PPI data will be the main market mover for gold.

 

Entry Price – Buy 1954.54

Stop Loss – 1948.54

Take Profit – 1962.04

Risk to Reward – 1:1.25

Profit & Loss Per Standard Lot = -$600/ +$750

Profit & Loss Per Micro Lot = -$60/ +$75

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

Gold’s Choppy Session Continues – Trader’s Brace for a Breakout 

The yellow metal prices failed to stop its previous day losing streak and dropped to 1,923.20 level mainly due to the broad-based U.S. dollar strength, backed by the upbeat prints of the NFIB Small Business Index and anti-risk moves. However, the broad-based U.S. dollar strength could be considered as one of the main reasons behind the yellow-metal latest weakness. 

Whereas, the bullish sentiment around the U.S. dollar was further improved after the U.S. markets saw a second rout in tech stocks in less than a week, which gave a boost to the U.S. dollar and dragged the yellow-metal down. On the other hand, the market earlier optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the latest reports that suggested the pause in AstraZeneca’s COVID-19 vaccine trials. This, in turn, undermined the market trading sentiment, which might help the gold prices to limit its deeper losses. 

It’s also worth reporting that the gold prices faced a steep drop and then recovery during the previous session. However, the rally was backed by major selloffs in stocks. The yellow-metal prices fall, bounce, and flatten could be attributed to the second U.S. big tech stocks record-breaking fall, which caused U.S. markets to fall. The overnight surge in gold prices along with lift in the dollar at the same time seems unusual, as one generally falls as the other gains. But the gains in the gold prices were short-lived as the U.S. dollar becomes the market favourite.

However, the equity market has been flashing red since the Asian session started. The reason could be associated with the major negative catalysts. Be it the further delay in the much-awaited coronavirus (COVID-19) relief package or the resurgence of COVID-19 new cases in the U.S., not to forget the long-lasting US-China and China-India tussle, all these factors are weighing on the market trading sentiment, which could be considered as the main factors that capped further downside momentum for the safe-haven assets. Apart from this, the fears of the U.K. and the European Union’s (E.U.) Brexit talks and a pause in the AstraZeneca’s COVID-19 vaccine trials also add pessimism around the market trading sentiment.

On the contrary, the stabilizing virus figures in Australia, China, and Japan helps the market trading sentiment to limit its deeper losses and might cap the further upside for the gold.

 

At the US-China front, the U.S. President Donald Trump pledged to “stand tough on China”, if he is re-elected. However, these statements could be witnessed by the Trump administration’s recent punitive measures over the Chinese diplomats. Whereas, the Dragon Nation did not feel reluctant to take revenge from the U.S. while announcing new U.S. visa restrictions.

At the USD front, the broad-based U.S. dollar extended its previous day bullish trend on the day amid downbeat sentiment in the market. Also supporting the U.S. dollar prices could be the major selloffs in U.S. stocks. The U.S. markets saw a second rout in tech stocks in less than a week, which underpinned the U.S. dollar. However, the gains in the U.S. dollar kept the gold prices under pressure as the price of gold is negatively related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies rose by 0.07% to 93.502 by 10:01 PM ET (3:01 AM GMT). 

Gold prices are supported amid a selloff in the U.S. stocks, especially Amazon, Apple, Microsoft and Facebook. Gold prices are now trading sideways around 1,927 level, with immediate support at 1,922 and resistance at 1,935 level. On the higher side, the XAU/USD may find next resistance at 1,942 level upon the breakout of 1,935 level. Conversely, a bearish breakout of 1,922 level may lead gold prices towards 1,917 and 1,910 level. Good luck! 

Categories
Forex Signals

Gold Consolidates in a Triangle Pattern

Description

In its 4-hour chart, the Gold price exposes a corrective sequence that follows the structure of a descending triangle pattern. This chartist figure suggests the possibility of a bearish continuation.
In the same way, according to the Elliott wave theory, the corrective pattern that follows a 3-3-3-3-3 sequence remains incomplete. Until now, the triangle pattern should complete its wave e of Subminuette degree identified in green before continuing its bearish short-term trend.
On the other hand, the RSI oscillator tested the zone below level 40, suggesting the change of the short-term bias from bullish to bearish.
In this context, there exists the possibility of a limited upward move toward the zone between $1,955.70 and $1,973.33 per ounce, from where the precious metal could complete the wave e in green and found fresh sellers expecting to incorporate their limit short positions.
We expect the test of the $1,956 per ounce from where the yellow metal could start to decline with a potential profit target in the zone of $1,862.9 per ounce. This level corresponds to the Augusts’ low from where the price started to consolidate in a triangle pattern.
Our bearish scenario’s invalidation level locates at $1,993.48 per ounce, corresponding to the end of wave c in green.

Trading Plan Summary

  • Entry Level: 1,956.48
  • Protective Stop: 1,993.48
  • Profit Target: 1,863.48
  • Risk/Reward Ratio: 2.51
  • Position Size: 0.01 lot per $1,000 in trading account.

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Forex Elliott Wave Forex Market Analysis Forex Technical Analysis

Gold Continues its Triangle-Pattern Consolidation

Overview

Gold continues on the fifth consecutive week of consolidation. The pattern is developing a contracting triangle which remains incomplete. The internal structure observed in this consolidation pattern suggests a limited upside before completing the corrective formation in progress.

Market Sentiment Overview

The price of Gold continues moving sideways by the fifth week in a row, testing the support on the extreme bullish sentiment zone of the 52-week high and low range. Although the precious metal eases 7.5% from its all-time high at $2,075.14 per ounce to date, the yellow metal report gains over 27.7% (YTD).

The following chart presents the yellow metal in its weekly timeframe. In it we distinguish the price movement testing the extreme bullish zone support located at $1,917.81 per ounce. This market condition leads us to expect a new decline for the coming trading sessions, finding support in the 26-week moving average, which currently moves in the $1,850.10 per ounce.

The potential decline in Gold’s price is backed by the strength of the U.S. Dollar Index, shown in the next intraday chart. In the figure, we observe the Greenback showing recovery signals moving above the 120-hour moving average.

On the other hand, the Gold Volatility index continues consolidating in a flag pattern. As discussed in our previous analysis, the current sideways movement, in progress, converges with gold’s consolidating formation, suggesting a new decline in the valuation of the precious metal.

Summarizing, the market sentiment for the yellow metal reveals the exhaustion of the extreme bullish sentiment that dominated the market participants’ activity until early August when the yellow metal reached its record high at $2,075.14 per ounce. At the same time, the recovery signals unveiled by the U.S. Dollar Index lead us to expect further declines in the precious metal.

Elliott Wave Outlook

The short-term Elliott Wave perspective for the yellow metal illustrated in the following hourly chart reveals a consolidation formation identified as an incomplete contracting triangle pattern.

In the hourly chart, we recognize the price action advancing in an incomplete corrective structural series, which began after the yellow metal topped at $2,075.14 per ounce from where the golden metal started to find sellers. The first decline corresponding to wave (a) of Minuette degree identified in blue found support at $1,832.62 per ounce. This bearish aggressively-looking leg alternates with wave (b), which still remains in progress.

The incomplete wave (b) in progress follows the internal sequence of a contracting triangle pattern, which currently ended its wave d of Subminuette degree labeled in green. According to the Elliott wave theory, the price should develop a marginal advance completing a wave e, in green, before continuing its bearish path. The limited upward move expected corresponds with the potential decline foreseen in the Gold Volatility Index, which shows a consolidation in the form of a flag pattern.

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Forex Signals

Gold Supported Over Symmetric Triangle Pattern – Quick Outlook! 

The yellow metal prices extended its Friday’s winning streak and took bids around the $1,936 level, mostly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning Brexit and on-going tension between the U.S. and China. This, in turn, helped the gold prices to put safe-haven bids. In the meantime, the coronavirus (COVID-19) worries also keeps the market trading sentiment cautious.

On the contrary, the broad-based U.S. dollar strength, backed by the jobs data, which showed a dip in the unemployment rate, and a surge in U.S. Treasury yields, becomes the key factor that capping further upside momentum for the bullion. The yellow metal prices are trading at 1,928.19 and consolidating in the range between 1,927.92 – 1,941.47. However, the bullion traders seem inactive to place any strong position amid Labor Day Holiday in America.

Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus issues, the market trading sentiment has been flashing red since the week started, which ultimately keeps the safe-haven assets supportive on the day. At the Brexit front, the UK PM Boris Johnson set the October 15 deadline to trade with the European Union (E.U.). The tension was further bolstered by the Financial Times’ headlines, suggesting that the U.K. is preparing fresh legislation that will override key parts of the Brexit withdrawal agreement. These gloomy headlines initially exerted downside pressure on the market and helped the safe-haven assets. 

At the US-China front, the Sino-China tensions further bolstered after the Trump administration’s blacklisting of Beijing backed SMIC. Hopefully, this happened after China warned to cut the U.S. debt buying and threatened U.S. chipmakers while announcing a 5-year plan to build the infrastructure to be self-dependant.

However, the reasons for the downbeat trading sentiment could also be attributed to the coronavirus (COVID-19) woes, which keep disturbing the global markets. The latest figures from Australia and Texas have been normalizing, but India and Brazil are still facing major pandemic issues. In Japan, 72,203 people have tested positive as of 7:30 PM, September 5, 2020.

At the USD front, the broad-based U.S. dollar extended its early-day gains and took further bids on the day due to Friday’s job data, which showed a decline in the unemployment rate and a rise in U.S. Treasury yields. On the flip side, the data showed that U.S. employment growth slowed, and permanent job losses increased. This, in turn, capping further again in the U.S. dollar. s. Although the gains in the U.S. dollar become the key factor that kept the check on any additional gains in the bullion as the price of gold is inversely related to the U.S. dollar price. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

Looking forward, the Labor Day Holiday in the U.S. will likely restrict the market moves. As well as, the updates on the virus and Sino-American tension could not lose its importance. In the meantime, the market players will be interested in the headlines concerning the Brexit.


At this movement, precious metal gold is trading sideways near 1,928, having immediate support at 1,930 and resistance at 1,940 levels. We can expect choppy trading today amid U.S. bank holidays in the wake of labor day. Neutral bias prevails in the market today. Let’s wait for gold to test the support level of 1,919. Violation of 1,919 may drive more selling until 1,903 and 1,880. Good luck!

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Forex Market Analysis

Gold Still Controlled by the Bull

Overview

The Gold price continues developing a sideways movement, which corresponds to an incomplete corrective structure that is still incomplete. Although there is an extreme bullish sentiment among market participants, the price of the golden metal could be poised to a decline in the following trading sessions.

Market Sentiment Overview

Gold prices continue moving sideways, consolidating above the psychological barrier of $1,900. The precious metal gains of over 28% (YTD) were boosted by the US Dollar weakness, which has dropped 5.47% (YTD) so far.

Gold, in its weekly timeframe, illustrates the market sentiment of the precious metal exposed by its 52-week high and low range. In the chart, we currently distinguish the market action moving mostly sideways, on the extreme bullish sentiment zone. The indecision candle that the yellow metal developed leads us to observe a state of equilibrium between the market participants.

On the other hand, looking at the volatility of the precious metal (GVZ) exposed in its daily chart, we observe the price action is consolidating in a flag pattern in the bearish sentiment zone. At the same time, we highlight the bounce GVZ developed from the extreme bearish sentiment zone toward the bearish zone in which currently is consolidating. We see that GVZ, moving above its 60-day moving average, shows an improvement in the investors’ sentiment.

The current market context observed in the Gold Volatility Index, which is consolidating creating a flag formation, added to Gold’s retesting of  $1,917.81 per ounce, corresponding to the support of the extreme bullish sentiment zone, leads us to expect a new decline in the price of the yellow metal.

Elliott Wave Outlook

The short-term outlook under the Elliott wave perspective and illustrated in its 2-hour chart exposes the sideways movement evolving an incomplete corrective structure, after the yellow metal touched its all-time high at $2,075.14 per ounce, reached on August 06th.

Once the precious metal topped at $2,075.15 per ounce, Gold completed its fifth wave of Minuette degree, and it is drawing a corrective sequence that remains incomplete. In the previous figure, we distinguish the aggressively developed first downward leg. This fast movement drove the yellow metal to ease over 10%, finding a bottom at $1,862.32 per ounce. That gave the pass to the wave (b), identified in blue, which remains in development.

The second leg of the incomplete three-wave sequence completed its first wave of a lesser degree at $2,015.65 per ounce, starting to retrace with a lower momentum. This decelerated movement observed in the wave b of Subminuette degree, identified in green, drives us to verify the alternation principle stating that a fast move should alternate with a slow movement.

For the coming trading sessions, we expect an upward movement that would complete the wave c of Subminuette degree, in green, which at the same time would end the wave (b) in blue. Once this wave ends, the price should start to decline in a five-wave sequence corresponding to wave (c) of Minuette degree, labeled in blue. This downward scenario agrees with the potential upside observed in the Gold Volatility Index chart.

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Forex Signals

Gold Winning Signal Ends at Stop Loss – What’s Next? 

The precious metal gold prices were closed at 1953.90 after placing a high of 1954.86 and a low of 1902.53. Overall the movement of gold remained bullish throughout the day. After posting losses remaining flat from 3 consecutive days, gold prices rose on Wednesday by 2% on the back of US dollar weakness on the eve of a speech from the Federal Reserve Chairman Jerome Powell. Investors were betting on a further stimulus package to diminish the impact of coronavirus pandemic.

The US dollar was weak on the board as the traders were placing bids on the hopes and expectations that there was a further stimulus to come. The US Dollar Index (DXY) eased by about 0.1% against the six major currencies basket and made gold cheaper for investors holding other currencies. The Chairman of Federal Reserve, Jerome Powell, will speak at a virtual Jackson Hole symposium on Thursday, at the central bank’s annual Monetary Policy Framework Review.

The speech is highly awaited because investors believe that it will make a case for stronger monetary stimulus to help the economy. The speech will also give clues about Fed finding additional ways to bolster the economy if Congress fails to deliver on a new pandemic relief package.

Ahead of the September monetary policy meeting of Federal Reserve, the question remained on cards that whether Powell will favor shifting inflation target to an average instead of the long-favored 2% level. It is because such a shift will allow inflation to run higher before interest rates increased. In this situation, the US dollar will become weak, and gold will gain.

The Fed Chair’s speech’s rising dovish expectations on the next day weighed on the local currency and helped bullions to post gains. However, if Powell will deliver the expected comments, then gold could quickly recapture the $2000 level this week.

On the other hand, the gold prices were further supported by the rising safe-haven appeal after the US & China’s escalated tensions. On Wednesday, the US penalized 24 Chinese companies, and the Trump Administration cut them off from the American market, saying that they had contributed to China’s controversial island-building campaign.

The companies were added to the government list that bans them from buying American products. The reason was provided as their role in helping the Chinese military to construct artificial islands in the disputed South China Sea.

On the vaccine front, the top US virus expert Dr. Anthony Fauci warned against rushing out a COVID-19 vaccine before proven effective and safe. He said that it could hurt the development of other vaccines.

US President Donald Trump has been considering plans to put out a vaccine before it has been fully tested because a move like this would increase his chances of re-election in November’s presidential election. Democrats have accused Trump foe being prepared to endanger American lives for political gain.

The warning by Dr. Fauci faded some of the risk appetites from the market and added in the gains of gold prices on Wednesday.

Meanwhile, the gains in yellow metal were checked by the positive economic data from the US. At 17:30 GMT, the Core Durable Goods Orders rose in July to 2.4% from the expected 1.9% and supported the US dollar. The Durable Goods Orders in July also rose to 11.2% from the estimated 4.4% and supported the US dollar. The better than expected US economic data on Wednesday caped additional gains in yellow metal prices.


The precious metal gold soared sharply after testing the support level of 1,902 level to place a high around 1,955. The precious metal has closed a bearish engulfing candle on the 4-hour timeframe and may drive selling bias in gold. Gold can drop until 38.2% Fibonacci retracement level, which stays at 1,934 and 61.8% Fibo level of 1,922. Resistance stays at 1,954 and 1,965. The market is currently trading with massive volatility amid Fed Chair Pawell’s speech. Since our trade is closed at stop loss, let’s wait a bit for the market to gain stability before taking the next trade. Good luck! 

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Forex Signals

Gold On Fire – Two Winning Forex Trading Signals Closed! 

The yellow metal prices failed to maintain its early-day modest gains and dropped from the $1,932.48 to 1,924.20 level due to the broad-based U.S. dollar modest strength, backed by the downbeat market trading sentiment. However, the gains in the U.S. dollar could be short-lived as the doubts over the U.S. economy persists. On the other hand, the previous market optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the latest disappointing U.S. data. As in result, the market trading sentiment turned negative, which eventually might help the gold prices to limit its deeper losses. 

On the contrary, the on-going optimism related to the US-China trade deal talks remained supportive of the market trading tone that stopped the bullion’s gains. The global economic recovery from COVID-19 turned gloomy after the disappointing U.S. data. At the data front, the August’s Conference Board (C.B.) consumer confidence index dropped to 84.8, it was the lowest level since May 2014, with COVID-19-induced high unemployment contributing to the fall. The data was much weaker than the expected of 93 and was also weaker than July’s figures of 91.7. This data exerted some downside pressure on the market trading sentiment and provided some support to the safe-haven asset.

However, the equity market has started to flash red since the U.S. data released, but the equity market losses were very modest and temporary as the US-China trade optimism helped the market trading tone. The U.S. and Chinese leaders affirmed their commitment to their phase one trade deal on Monday that capped the yellow metal gains. But, both the US-China continued to disagree on other issues that might keep the market cautious. As we all know, the U.S. policymakers have not yet confirmed that when they will start negotiating the COVID-19 aid package. However, the hurdles over the box remain on the card amid multiple differences between both parties.

Also weighing on the safe-haven metal prices could be the reports that suggested the disappearing coronavirus (COVID-19) numbers from the U.S. and Australia. In turn, this decreased the safe-haven demand in the market and kept the gold prices under pressure. Moreover, the U.K. government’s funding for the University of Cambridge’s COVID-19 vaccine trials after the American rush for the pandemic’s cure also kept traders hopeful as treating the deadly virus likely to release soon.

Despite the downbeat U.S. data, the broad-based U.S. dollar extended its early bullish trend on the day amid mixed sentiment in the market. However, the modest gains in the U.S. dollar kept the gold prices under pressure as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose 0.05% to 93.062 by 10:15 PM ET (3:15 AM GMT).

Be it the trade/virus updates or the USD moves, not forget the U.S. Durable Goods Orders; these all catalysts will grab the major attention and impact the currency pair. As well as, the traders are keenly awaiting the global central bankers’ comments from the Jackson Hole Symposium, up for Thursday and Friday.


Earlier today, we managed to close two winning signals on gold, and fortunately, we came out of the market a bit early before gold started reversing over the double bottom area of 1,907. The precious metal gold is now trading at 1,937 level, exhibiting a solid bullish turn, and it may find an immediate resistance at 1,938 level. Closing of candles below 1,938 levels may help us secure a quick selling in gold. Elsewhere, the XAU/USD pair may continue to rise until the 1,956 level. Good luck! 

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Forex Signals

Consecutive Two Winnings On Gold Trading Signals – What’s Next?

The yellow metal prices succeeded in stopping its previous day declines and started to gain some bullish bias near above 1,935 level on the day. However, the gold prices have nothing major to cheer on the day except U.S. dollar weakness. The investor turned to the safe-haven metal as the dollar dropped, and COVID-19 worries increased. 

The upbeat market sentiment, backed by optimism over U.S. authorization of a blood plasma treatment for Covid-19, turned out to be a major factor that cap further upside in the gold. Elsewhere, the reason behind the upbeat market sentiment could also be associated with the overnight optimism over the US-China’ constructive’ talks on phase one trade agreement, which eventually dulled gold’s safe-haven appeal. 

On the contrary, the lack of progress over the next round of the U.S. fiscal stimulus measures and the coronavirus (COVID-19) prevalence grab major attention and keep challenging the risk-on market sentiment, which might provide some support to the gold. At the press, the yellow metal prices are currently trading at 1,933.55 and consolidating in the range between 1,926.68 and 1,937.62. Moving on, the traders seem cautious to place any strong position as all eyes are now on Thursday’s Jackson Hole symposium.

Apart from this, the market trading sentiment was further bolstered by fresh optimism over the US-China’ constructive’ talks on phase one trade agreement. The Dragon Nation recently confirmed that China and the U.S. had a constructive conversation on the trade agreement. As per the keywords, “China says both sides agreed to continue pushing forward implementation of phase 1 trade deal.” However, these updates are positive for risk sentiment and might weigh on the safe-haven assets like gold.

Across the pond, the lingering uncertainty over the next round of the U.S. fiscal stimulus measures also supported the risk aversion. As we know, the U.S. policymakers have not yet confirmed the restart of negotiation related to the COVID-19 aid package. However, the hurdles over the package were intensified further after the House Speaker Nancy Pelosi took a U-turn from her previous readiness to cut the demands in half. On the flip side, the on-going tussle between US-China and India’s phasing out of Huawei equipment to cite the Sino-American tension turned out to be the major factor that helped the gold prices to maintain its bullish bias on the day.

As a result of risk-on market sentiment, the broad-based U.S. dollar failed to gain any bids and took the offers on the day as doubts persist over the global economic recovery from COVID-19 ahead of Fed Chairman Jerome Powell speech at Thursday’s Jackson Hole symposium themed. As well as, the risk-on market sentiment also weighed on the American currency. However, the U.S. dollar losses helped the gold prices to deeper its losses as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. dollar index that tracks the greenback against a basket of other currencies edged down 0.11% to 93.207 by 9:48 PM ET (2:48 AM GMT).

Moving ahead, the market traders will keep their eyes on the U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium, which is scheduled to open on Thursday. The U.S. August consumer confidence, which is due later in the day and will be key to watch. In the meantime, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the gold run-up.


Technically, the precious metal gold has violated the symmetric triangle pattern at 1,928 level, and below this, we tried to capture quick sellings twice and were able to capture quick green pips in both of the trades.

We have finally closed two winning signals in gold, but we had to come out of the market a bit early as the precious metal isn’t continuing with the selling trend. Anyway, we will still be looking to enter a selling trade below 1,928 level to target 1,911 and even further lower. Good luck! 

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Forex Signals

Gold Signal Hit 75 Green Pips – Brace for Second Trade!


Entry Price – Sell 1922.66
Stop Loss – 1928.66
Take Profit – 1915.16
Risk to Reward – 1:11.71
Profit & Loss Per Standard Lot = -$600/ +$750
Profit & Loss Per Micro Lot = -$60/ +$75

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

Gold Bearish Breakout – Brace for Selling!


Entry Price – Sell 1927.36
Stop Loss – 1925.68
Take Profit – 1907.68
Risk to Reward – 1:11.71
Profit & Loss Per Standard Lot = +$200/ +$2000
Profit & Loss Per Micro Lot = +$20/ +$200

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

Gold Facing Over $2,000 Level – Is it Going After $2,038?

In the early European trading session, the yellow metal prices stopped its previous day losing streak and recovered from the $1950-52 region to above $2000 level on the day. However, the bullish sentiment around the bullion was being supported by the broad-based U.S. dollar weakness. As well as, the multiple risk catalysts like US-China ongoing tussle, also triggered the precious metal’s rise on the day. In the meantime, the positive news over a potential COVID-19 vaccine becomes the key factor that capping the further upside for the gold.

At the moment, gold is trading at 2,005.25 and consolidating in the range between 1,980.88 – 2,010.09. Moving on, the traders seem cautious to place any strong bids ahead of the minutes from the U.S. Federal Reserve’s latest policy meeting, which are scheduled to be released on Wednesday.

Be it the failure of the U.S. lawmakers to provide any latest announcement over the coronavirus (COVID-19) relief package or latest penalties on China from the U.S., not to forget the ongoing rise in coronavirus cases; the market traders prefer to invest their money into the safe-haven assets like gold. The US-China tussle turns sour further as Trump keeps increasing the difficulties for the companies of China. As a result of the delayed trade review meet, American diplomats announced punitive measures for Huawei in the latest attack on China.

Also weighed on the market risk sentiment was the failure of the Democrats and Republicans to offer any latest announcement on the coronavirus (COVID-19) relief package amid political differences. Apart from this, the coronavirus concerns also keep challenging the energy traders. The virus fears take the front seats as the global leaders struggle to find any medicine to the deadly virus. Whereas, the ongoing rise in the coronavirus cases in Europe fueling the worries about economic recovery. As per the latest report, the actual coronavirus cases increased to 225,404, with a total of 9,236 deaths so far.

Whereas, the cases increased by 1,390 in Germany on the day against the previous day +738. At the same time, the death losses rose by 4, according to the report of German disease and epidemic control center, Robert Koch Institute (RKI). On the positive side, U.S. markets witnessed a heavenly session during the previous session, as the Nasdaq hit a record high yesterday and the S&P500 coming close to reaching its record high. But Asian stocks were mixed on the day, and the dollar was down as well. However, these positive signs turned out to b a major factor that capped further upside for the gold.

Considering the failure of agreeing on the coronavirus (COVID-19) relief package, the broad-based U.S. dollar was down on the day. However, market investors have stuck over uncertainty over the delayed package. Moreover, the weaker U.S. dollar could also be associated with the ongoing doubt about the U.S. economic recovery amid intensifying coronavirus cases.


The precious metal gold continues to bullish at a 2,008 level. We have already captured one positive and one negative signal in gold. But overall the pic count remains green, which is good for us. For now, gold may find an immediate resistance at 2,009 level, and above this, gold can go after 2,038 level. The RSI and MACD support buying trends while the 50 EMA also suggests bullish bias in the market. Let’s consider taking buy trade over 2,008 resistance level breakout during the U.S. session. Stay tuned to our forex trading signal page; we may enter trade if setup confirms buying. Good luck!

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Forex Signals

Gold Signal Hits Stop Loss – What’s Next to Expect? 

On Thursday, the precious metal gold firmed above $1,900 as the dollar declined, with bargain hunters posting on a resumption of bullion’s broader upwards trend brought by its recent steep slide from a record peak. On the positive side, U.S. President Donald Trump showed too much optimism about the U.S. economy during the White House press conference on early Thursday morning in Asia. As per Trump’s keywords, “U.S. economic performance significantly better than Europe.” 

He also said, ” We’re doing amazingly well with the coronavirus (COVID-19) and therapeutics.” However, these positive statements helped the equity market limit its deeper losses and capped the further upside for the yellow metal prices. On the positive side is the Republican leader’s willingness to cut payroll taxes after the November month elections. 

Meanwhile, the upbeat market performance could also be associated with the reports that President and CEO of the Federal Reserve Bank of Dallas Robert Steven Kaplan keep pushing the government for further unemployment benefits while refraining from imposing any lockdowns retractions. At the coronavirus front, the COVID-19 cases remain on the card and continue to affect the U.S. economic recovery. As per the latest report, the figures have crossed almost 5.2 million cases in the U.S. alone as of August 13, as per the Johns Hopkins University and millions unemployed.

Considering the failure of agreeing on the coronavirus (COVID-19) relief package, the broad-based U.S. dollar was down on Thursday morning in Asia. Although market investors have stuck between optimism and uncertainty over the delayed package, some claimed that U.S. economic recovery depended on both sides reaching an agreement. Moreover, the weaker U.S. dollar could also be associated with the on-going doubt about the U.S. economic recovery amid intensifying coronavirus cases. Whereas, the losses in the U.S. dollar become the key factor that kept the gold prices supportive as the price of gold is inversely related to the U.S. dollar price. 


Speaking about the signal, it was doing pretty well as we tried to trade the choppy session within 1,953 – 1,910 level. Unfortunately, the market reversed right before hitting our take profit. Our stop loss was too tight, considering the current level of volatility in the market. For now, the precious metal is trading at 1,930, and the upper and lower boundary of 1,953 to 1,910 level is providing resistance and support, respectively. You can either take a sell trade below 1,953 level or buy trade over 1,910 support. Good luck! 

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Forex Signals

Gold Signal Offers Another +150 Pips Profit – What’s Next?

Earlier today, we managed to close another exciting trade in gold, capturing 153.6 green pips. The precious metal gold bounced back over $1,900 per ounce as soft U.K. data revived concerns across a the coronavirus-driven economic slowdown and backed bullion erase primary losses fired by a resurgent dollar.

Emphasizing the economic loss produced by the pandemic, data revealed Britain’s economy contracted by a record of 20.4% between April and June, the most significant reduction announced by any major economy so far.

Despite the reducing number of virus cases in the U.S., the doubts remain about the U.S. economic recovery. As per the latest report, the COVID-19 crossed over 20 million cases reported as of August 11 as per the Johns Hopkins University data. But Texas, New York, and California reported declining numbers of hospitalizations.

Apart from the virus woes, the long-lasting tussle between the world’s two largest economies remained on the cards as bt nation fired shoots each other. It is worth restating that the Dragon Nation took revenge from the U.S. by imposing the sanctions on 11 American yesterday. The move comes after the U.S. sanctioned 11 Chinese officials and their allies in Hong Kong, including Hong Kong’s Chief Executive Carrie Lam. This statement capped the further upside in the equity market and helped gold prices to gain a bit of support.

Despite the intensifying conflict between US-China, the PBOC Governor expressed an upbeat tone while saying, “China will continue implementing the phase-one economic and trade agreement with the United States. This statement gave some breath to the investors.


On the technical side, the precious metal gold has tested the upward trendline support level of 1,877 level. Closing above this trendline is also suggesting buying trends in the gold. We took a buy trade at 1893.06 with a stop loss at 1894.42 and took profit at 1908.42. For now, the gold is holding at 1,932 level, and gold is facing resistance at 1,940. Above this, the next resistance stays at 1,955 level. Let’s wait for the market to extend another goos setup, and we will share the next trading signal. Stay tuned.!

Categories
Forex Signals

Gold Triple Bottom Breakout Confirmed – Second Signal In Play!

The yellow metal prices extended its previous day losing streak and took offer near $2,014 level due to the risk-on market sentiment, supported by the expectations of a next U.S. stimulus, which boosted the market trading sentiment and undermined the safe-haven demand in the market.

On the other hand, the ongoing struggle between the United States and China continues to simmer, which became the key factor that helped the safe-haven gold limit its deeper losses. The broad-based U.S. dollar weakness, in the wake of upbeat trading sentiment, also capped losses for the yellow metal. While the ever-rising number of COVID-19 cases also urge investors to take shelter into safe-haven assets. The yellow metal prices are currently trading at 2,015.01 and consolidating in the range between 2,013.17 and 2,030.05. Despite many factors portraying the rush to risk-safety, the market players just giving attention to the optimism that the U.S. Congress reached closer to an agreement over the latest COVID-19 stimulus measures that caused a rebound in U.S. bond yields.

Despite the ongoing tussle and tit-for-tat responses between the US-China, the trade deal remains intact, as investors are awaiting a meeting between top U.S. and Chinese trade officials on Saturday to examine the first 6-months of the Phase 1 trade deal. On the contrary, the Dragon Nation imposed sanctions on 11 U.S. policymakers that include two Senators yesterday, in return to the U.S.’ move last week sanctioning 11 Chinese officials and their allies in Hong Kong. However, these gloomy headlines helped safe-haven metal to limit its further downside momentum.

Also challenging the risk-on market sentiment was the COVID-19 crisis. As per the latest report, the COVID-19 crossed over 20 million cases reported as of August 11, as per the Johns Hopkins University data. But Texas, New York, and California reported declining numbers of hospitalizations.

Elsewhere, U.S. President Donald Trump tweeted that top congressional Democrats wanted to meet with him over COVID-19 related economic relief. While the U.S. Congress is set to restart discussions on the COVID-19 deal. This, in turn, boosted the market risk sentiment and kept the yellow-metal under pressure. However, the investors now will be awaiting whether the Republicans and the Democrats reach a consensus on the latest stimulus measures.

Moreover, the market risk-on sentiment was further bolstered by U.S. President Trump’s optimism towards the American economy. He said he sees no reason why can’t the economy improve 20% in the 3rd-quarter (Q3). This positive headlines also gave support to the market trading sentiment and contributed to the metal losses.

The market traders still cheering the U.S. President Donald Trump’s action of signing four executive orders to release unemployment claim benefits, help with student loans, and aid for those living in a rented house, which also exerted a positive impact on the market trading sentiment and contributed to the gold losses.

Whereas, signs of economic recovery in China also supported the risk-on market sentiment. China’s consumer price index (CPI) increased 2.7% while its producer price index (PPI) dropped 2.4% in July from a year earlier, as per the National Bureau of Statistics report.

Despite the U.S. Congress reached closer to an agreement over the latest COVID-19 stimulus measures, and U.S. bond yields rebounded, the broad-based U.S. dollar failed to stop its losses and took the further offer on the day as the risk-on market sentiment weighed on the safe-haven U.S. dollar. However, the declines in the U.S. dollar helped the gold prices to limit its deeper losses as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped 0.06% to 93.537 by 10:01 PM ET (3:01 AM GMT).

Due to the lack of major data/events on the day, the market traders will keep their eyes on the USD price dynamics and coronavirus stories, which will play a key role in driving gold prices. As well as, the traders will keep their eyes on the news concerning U.S./China.

The precious metal gold’s bearish bias continues to drive it’s priced lower towards 1,972 level. Fortunately, we have already secured around 200 pips in gold and now, we are looking for another good point to take a buy trade in gold. For now, the precious metal may find support at 1,960 levels and resistance at 1,985. Let’s wait for market to settle down to secure the next trade.


Entry Price – Sell 2006.28
Stop Loss – 2006.26 (Breakeven Stop Loss)
Take Profit 1998.78
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$60

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

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Forex Signals

Gold Breaks Below Triple Bottom Support – Quick Signal!

Entry Price – Sell 2014.48
Stop Loss – 2020.12
Take Profit – 2006.98
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$60

Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.

iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US