Tag: Gold

Categories
Forex Signals

Gold Sideways Movement Continues – Stronger NFP Keeping Dollar Stronger!

Today in the early Asian trading session, the yellow metal prices extended its late-Friday pullback and moved below $2,030. Let me remind you, the gold prices fresh losses can be considered as an extension to Friday’s losses that were the highest in 2-months. The reason could be associated with fresh risk-on market sentiment, supported by Trump’s latest positive statement that refueled hopes of further stimulus. 

Today in the early Asian trading session, the yellow metal prices extended its late-Friday pullback and moved below $2,030. Let me remind you, the gold prices fresh losses can be considered as an extension to Friday’s losses that were the highest in 2-months. The reason could be associated with fresh risk-on market sentiment, supported by Trump’s latest positive statement that refueled hopes of further stimulus. 

Today in the early Asian trading session, the yellow metal prices extended its late-Friday pullback and moved below $2,030. Let me remind you, the gold prices fresh losses can be considered as an extension to Friday’s losses that were the highest in 2-months. The reason could be associated with fresh risk-on market sentiment, supported by Trump’s latest positive statement that refueled hopes of further stimulus. 

As in result, the risk sentiment got a lift while the Asian equities trimmed their losses and held up near-daily highs that urged buyers to invest in riskier assets instead of safe-have assets. The risk-on market sentiment got additional support from upbeat China’s CPI, PPI, for July data. Elsewhere, the broad-based U.S. dollar reported losses on the day despite Friday’s better-than-expected U.S. payrolls report, which helped the bullion prices to limit its deeper losses. Meanwhile, the coronavirus (COVID-19) crisis gradually supported the safe-haven assets and capped its losses. The yellow metal prices are currently trading at 2,029.23 and consolidating in the range between 2,019.85 and 2,036.24.

Earlier today, U.S. President Donald Trump came out with positive news that “Democrats have called and want to get together.” This statement recently boosted hopes of the further stimulus package expired during the last week after policymakers canceled negotiations. However, this move is seen as a major factor that turned risk sentiment positive. Apart from this, U.S. President Donald Trump fulfilled his promise to take executive action as the U.S. Congress failed to offer any outcome over its latest stimulus measures. As a result, U.S. President Trump’s signed 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. 

In the meantime, the risk-on market was further bolstered by upbeat China’s CPI, PPI for July data. At the data front, the China July CPI +2.7% YoY (Reuters poll +2.6%). China July PPI -2.4% YoY (Reuters poll -2.5%).

On the negative side, the gloomy updates concerning the US-China tension and the coronavirus (COVID-19) kept challenging the risk-on market sentiment and traders cautious. At the US-China front, the long-lasting tussle between the two biggest economies continued to worsen day by day as Trump banned U.S. firms from doing any business with TikTok, WeChat, or the applications’ Chinese owners in the wake of national security threat. 

The tension between both parties was further bolstered after the U.S. imposed sanctions on senior Hong Kong and Chinese officials, including Hong Kong’s Chief Executive Carrie Lam, during last week. In the meantime, the White House National Security Adviser Robert O’Brien blamed China while saying that the “Chinese hackers have been targeting U.S. election infrastructure ahead of the 2020 presidential election.”

Also challenging the risk-on market sentiment was the COVID-19 crisis. As per the latest report, the U.S. crossed the grim milestone of five million COVID-19 cases as of August 10, according to Johns Hopkins University.

Whereas Australia’s 2nd-most populous state, the pandemic epicenter, Victoria, reported the biggest single-day rise in deaths. As per the latest figures, Australia’s coronavirus death losses crossed 314 as Victoria announces a daily record of 19 deaths and 322 new cases in the past 24 hours. Friday’s better-than-expected U.S. payrolls report also supported the risk-on market sentiments report. At the data front, the Non-farm payrolls increased by 1.763 million in July, against the predicted 1.6 million increase. In the meantime, the unemployment rate also dropped to 10.2% in July, vs. June’s reading of 10.5%.

Despite this, the broad-based U.S. dollar failed to stop its losses. It took the further offer on the day as the United States still facing virus woes. It struggled to control a spike in coronavirus cases, which fueled fears that U.S. economic recovery from COVID-19 has diminished. As well as, the risk-on market sentiment also weighed on the American currency. However, the losses in the U.S. dollar helped the gold prices to stay higher 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 by 0.11% to 93.308 by 10:16 PM ET (3:16 AM GMT).

Due to mixed headlines, the S&P 500 Futures failed to offer any clear direction while stocks in Australia and New Zealand stayed moderately positive. Moreover, the U.S. 10-year Treasury yields avoid moving as Japanese traders enjoy holiday due to Mountain Day.


Daily Support and Resistance

Support Pivot Resistance
2019.8600 2027.4300 2035.9600
2011.3300 2043.5300
2003.7600 2052.0600

Gold is trading at 2034 level, and it has settled a Doji candle over the 2023 support zone. At the same time, resistance lingers at the 2036 level. Over this, gold prices can rise towards 2063 level, and bearish breakout of 2023 level can directly sell unto the 1998 level. We managed to close 29.6 green pips during the Asian session today, but the second signal later ended up in loss. Let’s wait for more signals later today. Good luck! 

Categories
Forex Videos

Making Huge Profits In Gold buying the dips!

https://youtu.be/lllnZpBxeVo

https://youtu.be/lllnZpBxeVo

Gold, buy the dips

Welcome to this forex academy educational video. In this session, we will be looking at the uptrend in gold prices with regard to the possibility of a continuation in this bull trend.

Gold, buy the dips.


In this historical chart going back to 1998 where prices were just 200.00, we can see an almost exponential rise in the value of gold to its current levels.
Gold, which is the oldest currency on earth, is traded primarily by people looking to invest by taking ownership of the physical product however it is used in the markets four trading on speculation for hedging against swings peaks and troughs in the general financial markets which is pretty much what we are seeing today. The most recent rise in the value of go gold is attributed to the uncertainties in the global financial markets pertaining to the onset of the covid virus.
The recent rise in the value of gold should be attributed to a risk-off event in the financial markets where people are bailing out of certain riskier assets and moving into gold. This includes general speculators who are enjoying the recent bull trend to these historic highs.


In this 5-day chart, we can see peaks, troughs, and spikes in prices, plus pullbacks and price flattening followed by a slight sell-off, and then continuations to the current highs. Price has generally been able to stay above 1900.00

Analysts at Goldman Sachs have increased their 12-month price outlook for gold to $2,300 a troy ounce. And while stock markets around the world are looking exposed to the continuation in the covid virus with potential falls on the horizon, and where yields are considered to be low in the bond market, it is no surprise that investors are looking for ways to offset their exposure to these assets and recently, for many, gold stands out. The bull trend speaks for itself.

Morning show institutions wrestle with the incredible amounts of stimulus being unleashed into the market by the federal reserve, and well they worry about the potential knock-on effect with regard to rising inflation; as a result, markets tend to reflect on previous similar situations such as the market crash in 2008 and other virus outbreaks in order to predict future price movement. While the big guns worry about the intricacies of the continuing financial crisis, shrewd investors will be following the money. With that in mind, gold is looking like a safe investment, in which case some major analysts are suggesting should continue looking for entries into this gold trend as it nudges up towards 2000.

Categories
Forex Signals

Oversold Gold Bracing for Bearish Correction – Let’s Capture Quick Sell!

Entry Price – Sell 2036.88

Entry Price – Sell 2036.88

Entry Price – Sell 2036.88
Stop Loss – 2042.88
Take Profit – 2029.88
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 Market Analysis

Gold Hits a New Record High

The Gold price opened the current trading week to reach a new all-time high at $1,987.95 per ounce, approaching the psychological barrier of $2,000 per ounce. 

The Gold price opened the current trading week to reach a new all-time high at $1,987.95 per ounce, approaching the psychological barrier of $2,000 per ounce. 

The Gold price opened the current trading week to reach a new all-time high at $1,987.95 per ounce, approaching the psychological barrier of $2,000 per ounce. 

Market Sentiment Overview

During this year, the precious metal reports an advance over 31% (YTD), boosted by global recession concerns. The safe-haven metal has increased its value at a similar pace of the descents on the worldwide growth rate. A fact that reduces the possibility of an economic recovery in the near term.

In its weekly chart, the yellow metal exposes the bullish momentum that sent the price over September’s 2011 high at $1,920.24 per ounce, climbing to $1,987.95 per ounce this week.

 

On the first chart, we distinguish the price moving in the strong bullish sentiment zone of the 52-week high and low range, where we observe the precious metal reaching fresh highs. Simultaneously, the price action continues moving above the 26-week moving average, showing that the bullish bias remains intact. The separation between the moving average and price leads us to conclude that Gold is in an overbought stage. This condition may carry the precious metal to begin a corrective movement.

On the other hand, the Institutional Net Positioning – green curve at the bottom of the previous image- shown by its latest CFTC report, reveals a decrease in the speculative positioning,  decreasing by 11.12% (WoW) compared with the previous reading. This decrease exposed in the following figure illustrates the institutional net positioning moving bellow the 13-week moving average. 

Summarizing, although the price action continues reaching fresh all-time highs, the big participants’ actions reveal a take-profit activity on their long-side positioning, which could be being helped by an extreme bullish sentiment on news media.

Elliott Wave Outlook

The short-term Elliott wave  Gold’s perspective unveiled in its 2-hour chart reveals the price moving in a terminal structural series corresponding to an ending diagonal pattern. This technical formation comes after the price rallied, developing a third extended wave of Minuette degree identified in blue.

The bullish cycle that remains intact began on June 05th when the yellow metal found fresh buyers at $1,668.30 per ounce. The impulsive sequence observed in the previous chart, reveals its advance in a third extended wave, which topped at $1981.20 per ounce on July 28th, where the price retraced from, completing its wave (iv) of Minuette degree identified in blue. 

Once the fourth wave in blue was completed, the price of Gold advanced in the current fifth wave of Minuette degree, showing an internal structure that looks like an ending diagonal pattern. This Elliott wave formation warns us about the potential reversion of the bullish trend. Although it will likely decline short-term, Gold’s bias remains on the bullish side as long as the price stays above $1,907.20. However, if the price breaks and closes below the base-line ii-iv of the ending diagonal, the yellow metal could visit the $1,907 level as its first relevant support.

Categories
Forex Signals

Gold Breaking Below Support 1,969 – Quick Update on Trading Signal!

Entry Price – Sell 1969.87

Entry Price – Sell 1969.87

On Monday, the precious metal gold prices failed to manage its early-day sharp gains and slipped from a record high of around $1,988.02. Gold prices fell below $1,988 level to trade modestly at $1,968 level, possibly due to the broad-based U.S. dollar fresh bids in the wake of safe-haven demand. However, the gold prices took round near the record high level.

The gold early-day sharp gains could be associated with the risk-off market sentiment triggered by the geopolitical tension between the U.S. and China. As well as the lack of clarity surrounding the much-awaited U.S. fiscal package also favored the safe-haven gold. Elsewhere, the bullish bias in yellow-metal prices was further bolstered by the coronavirus (COVID-19) woes that have been greatly favoring the market’s rush to risk-safety. Moving on, the gains in the greenback could be short-lived or temporary as the coronavirus continuously increases in the U.S., which faded the hopes for quick U.S. economic recovery. At the moment, the safe-haven-metal prices are currently trading at 1,974.19 and consolidating in the range between 1,969.96 and 1,985.11.

Apart from this, the ever-increasing coronavirus (COVID-19) cases continued to weigh on the investor’s confidence about the economic recovery and kept the trading market depressed, witnessed by the fresh leg down U.S. stocks futures. The number of cases globally almost crossed 17 million, while 4.4 million confirmed cases and more than 150,000 deaths toll in the U.S. individually. Elsewhere, the Australian state of Victoria recorded 429 new coronavirus cases on the day, with 13 death recorded so far. It is worth reporting that there are currently 6,489 active coronavirus cases in Victoria. Among them, 416 are in hospital. Apart from Aussie, Tokyo reported 292 new coronavirus infections so far on the day. Considering the on-going rise of virus cases in Australia, the Victorian Premier Daniel Andrews said that he would announce further business restrictions, which would further fuel concerns over the recovery in oil demand.

Besides, the risk-off market sentiment was further bolstered by the U.S. policymakers’ inability to provide details of the fiscal plan. Although the relief measure expired on Friday, the U.S. Senate members failed to offer any information on the unemployment claims benefit. Meanwhile, the uncertainty over the much-awaited fiscal package remains on the cards, as the Democrats and Republicans are still against each other over the package’s size. The Democrats are willing to offer $3.5 trillion help, while Republicans are not supporting anything more than $1.0 trillion.


Considering the early bearish trend continuation signal in gold, we decided to take a sell trade around 1,969 level to target the 1,963 level today. On the lower side, the gold may support around $1,961 level, and violation of this level can extend the selling trend until $1,945. Check out the trade plan below…

Entry Price – Sell 1969.87
Stop Loss – 1975.87
Take Profit – 1963.87
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
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 Daily Topic

Gold Vs Bitcoin: Which one is a Better Long-term Investment?

The most striking difference between gold and Bitcoin is that the former is a tangible asset. At the same time, the latter is an intangible digital asset that is created by computers crunching complex equations. From an investment perspective, gold is regarded as a ‘safe haven’ asset given its long history as an alternative investment […]

The most striking difference between gold and Bitcoin is that the former is a tangible asset. At the same time, the latter is an intangible digital asset that is created by computers crunching complex equations. From an investment perspective, gold is regarded as a ‘safe haven’ asset given its long history as an alternative investment […]

The most striking difference between gold and Bitcoin is that the former is a tangible asset. At the same time, the latter is an intangible digital asset that is created by computers crunching complex equations. From an investment perspective, gold is regarded as a ‘safe haven’ asset given its long history as an alternative investment for hedging against stock market volatility. Also, the increasing ownership of gold by central banks and governments further validates its ‘safe haven’ status as a reliable store of value. 

Bitcoin, on the other hand, is a new entry into the asset market. It made headlines in 2017 when it traded at an all-time high price of $20,000. Since then, it’s the market price has been swinging violently, which explains why it’s considered a speculative investment. Although Bitcoin’s outsized volatility usually scares off investors, it has contributed to the increase in the value of the digital asset in the long haul. 

That said, in a digital economy, hoarding piles of gold bars as a store of value can be overly cumbersome. As such, many investors are concerned about their long-term wealth and are mulling over investing in Bitcoin – a virtual currency whose future looks promising in the era of the digital economy. 

Fundamental differences between Gold and Bitcoin 

Besides the physical-digital difference, other key distinguishing features need to be examined before investing in either gold or Bitcoin. These include: 

i) Supply and demand

As with most assets, the value of gold and Bitcoin is tied to their supply and demand. The higher the supply, the lower the demand, leading to lower market prices/value. 

For starters, it’s hard to know the exact supply of all the gold in the world. However, if one were to draw a graphical representation of gold’s supply, one would notice a gradual increase in gold’s market supply over the years. With this in mind, we can deduce that gold’s price will decline at some point due to low demand. Also, owing to its unknown supply, the price of gold is prone to sneaky inflations. With Bitcoin, it’s a different case. 

A well-known characteristic of Bitcoin is that its supply is capped at a known value – 21 million Bitcoins. So far, there are about 17 million Bitcoins in the market. This is to say that its supply will decrease over time, driving up its demand. Consequently, Bitcoin’s price will increase. Also, a fixed supply means that Bitcoin can’t bend to inflationary pressures associated with overproduction. Additionally, as modern commerce becomes more digitized, Bitcoin users will increase in equal measure, further increasing its value.

ii) Liquidity

When investing in an asset for the long-term, it implies that you won’t liquidate it anytime soon. However, it would be best if you considered the asset’s market liquidity. This is especially true when you need to raise a high amount of cash, and the only way is to sell part of your entire investment. 

For gold, it’s easy to exchange it for fiat cash by selling it to a local buyer. How fast and easy you exchange it depends on the amount of gold you have. Liquidating a few gold bars/jewelry is easier compared to liquidating a sizeable amount of gold, not to mention the risk of theft.  

Bitcoin, on the other hand, has a relatively high liquid market, making it easier to exchange any amount of Bitcoin for cash. The high liquidity is due to an increased number of exchanges with high trading volumes, in addition to other intermediary solutions such as Bitcoin ATMs and stablecoins. What’s better, Bitcoin can be liquidated in smaller amounts, of up to 8th decimal place, making it easy to liquidate just the right amount. Unfortunately, gold isn’t divisible into smaller amounts as those of Bitcoin’s magnitude. 

iii) Reliability

Suppose there’s one area that gold triumphs over Bitcoin, is in reliability. For more 2,000+ years, gold was used as a medium of exchange. Even after the advent of money, it has managed to maintain a relatively stable value.

At one point in the long history of gold, the US government, under President Franklin Roosevelt, implemented measures to prohibit and criminalize the possession of gold. Even though the gold prices plunged following these drastic measures, trading and possession of gold increased significantly in subsequent years. If the same crackdown were placed on Bitcoin usage, it would put the digital currency at the end of the bench. Even worse, a change in consumer preferences or the advent of a new technological disruption has the potential to stunt the growth of Bitcoin ultimately. As such, gold being a natural resource will consistently hold its value for more years compared to Bitcoin, which is a dynamic human-made system. 

Additionally, gold investment has proper regulation, while investment in Bitcoin is not regulated. This gives gold added legitimacy making it a preferred investment option. 

iv) Utility 

Gold has several uses besides being a store of value. It can be used on luxury items like jewelry and even in electronic devices where it acts as a conductor. In some cases, gold coins are also used in place of fiat cash. Due to these real-world use cases, it has a more readily available market, which adds to its liquidity. 

Bitcoin, having been in the market for just 11 years, is making quite plausible efforts to gain real-world use cases besides its position as a speculative investment. Infrastructures such as Merklized Abstract Syntax Trees ( MASTs), Taproot, and Schnoor signatures are pushing Bitcoin in the direction of real-world functionality in which it’ll contribute to the development of smart contracts. Moreover, it is anticipated that as Bitcoin usage increases in the incoming digital economy, its demand will rise relative to its mathematically metered supply. This will increase Bitcoin’s price and liquidity. 

Conclusion: which one is Better? 

Gold has been around for quite a long time and doesn’t show any clear sign of fading away from the market anytime soon. Its value will likely increase as various governments use it as a monetary reserve. The same can’t be said about Bitcoin since it’s still in its infancy stages. As we approach the digital economy, Bitcoin investors are bound to reap hugely. So, asking whether Bitcoin is a better long-term investment compared to gold isn’t entirely appropriate, as it is possible that the two can, and will, exist as complementary assets. As such, both Bitcoin and gold can fit in an investor’s long-term portfolio for diversification purposes. 

Categories
Forex Signals

Gold Signal Update – Three Winning Trades In a Row!

Entry Price – Sell 1.15841

Entry Price – Sell 1.15841

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

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

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

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

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

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

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

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

Entry Price – Sell 1937.4

Stop Loss – 1941.4

Take Profit – 1929.4

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

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

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 Basic Strategies

Forex Trading Using ‘Commodity Correlation Strategy – 2’

Introduction

Introduction

Introduction

A correlation coefficient is a number that describes the extent to which two instruments are correlated to each other. The number ranges between -1 and +1. This number moves from periods of positive correlation to periods of negative correlation. Located on one end of the scale, +1 is considered a state of the positive correlation between two instruments.

If the number is anywhere between 0 and +1, the two assets are said to move in the same direction, with a certain degree of positive correlation. On the other end of the scale, -1 is considered a state of negative correlation between two instruments. If the number is anywhere between 0 and -1, the two instruments are said to move in the opposite direction, with a certain degree of negative correlation.

The strategy we will be discussing today seeks to exploit the inverse correlation between the dollar index and Gold’s price. According to the World Gold Council, Gold tends to rise when the U.S. dollar falls. It is observed in the past that the correlation coefficient for Gold and the dollar index was between -0.6 and -0.8. This means if the dollar index is up, there is a 60% to 80% chance that gold prices would come down. In contrast, if the dollar index is down, there is a 60% to 80% chance that gold prices would come down. Let us see how the strategy works.

Time Frame

The commodity correlation strategy works well in the Daily (D) time frame. This implies that each candlestick on the chart represents the price movement of one day.

Indicators

We will be using the ATR indicator in the strategy. No other indicators are required for the strategy.

Currency Pairs

There are two charts we need to focus on in this strategy. The first one is the spot Gold or XAU/USD, and the second one is the chart of the dollar index.

Strategy Concept

The dollar index’s price action is used as a reference to initiate a trade on the XAU/USD. Technical levels of support and resistance on the dollar index chart are used to spot long and short trades on XAU/USD. If the price closes below the support on the dollar index chart, a long trade is initiated on the XAU/USD the following day. Similarly, if price closes above resistance on the dollar index chart, a short trade is initiated on the XAU/USD the following day. The risk-to-reward of this trade is 1:2. A bigger target can be achieved by allowing the trade to run its course.

The strategy is very simple for those who have a basic understanding of support and resistance. Another reason behind its popularity is that it does not involve the usage of complex indicators. The trade setups are not formed too often as we are using the daily time frame charts. Hence, a lot of patience is required for the application of the strategy.

Trade Setup

Here are the steps to implement the commodity correlation strategy. In both the instruments, we will be using the daily time frame chart only.

Step 1

The first step of the strategy is to open the dollar index’s daily time frame and mark key areas of support and resistance on the chart. If one is looking for ‘long’ trades, the identification of the support area is crucial. And if one is looking for ‘short’ trades, identification of ‘resistance’ trade is crucial. After marking out of the lines, wait for the price to breakout or breakdown. In case of a breakout, we will look for ‘short’ trades in ‘gold,’ and in case of a breakdown, we will look for ‘long’ trades in ‘gold.’

We have taken an example of a ‘long’ trade where we will be executing the steps of the strategy. In the below image, one can see that the price has broken below the long term support.

Step 2

Next, we open the chart of XAU/USD, where we look for ‘long’ or ‘short’ entry. We enter for a ‘long’ in ‘gold’ on the following day of the dollar index’s break of support. Similarly, we enter for a ‘short’ in ‘gold’ on the following day of the break of resistance in the dollar index. The entry is taken right at the opening candle on the next day.

In our case, we are entering for a ‘long’ in ‘gold’ on the following day since the price had broken the dollar index’s support on the previous day.

Step 3

In this step, we determine the take-profit and stop-loss for the strategy. The stop loss is mathematically calculated where it is placed at the amount obtained after multiplying 2 to the value of the ATR indicator on the previous day. This means if the ATR value is 30, then stop loss will be set 60 points away from the current market price (CMP). The take-profit is extended up to a point where the trade results in a risk to reward ratio of 1:2. As mentioned earlier, since this is a long-term chart, the trade has the potential to give higher returns.

We can see in the below image that trade has almost reached our ‘take-profit’ where this is the current state of the market.

Strategy Roundup

Part II of the commodity correlation strategy seeks to take advantage of the negative correlation between the dollar index and gold prices. Using the dollar index as a reference, we are activating trades on the XAU/USD pair, which is nothing but the price of spot gold.

However, the interest rates announcement by the Federal Reserve will try to keep the inverse relationship between the U.S. dollar and Gold. This strategy is ideal for traders around the world who do not have time to watch the markets on a daily basis. The strategy can also be used to look for investment opportunities in Gold.

Categories
Forex Signals

Gold Trades in Choppy Ranges – Brace for a Breakout! 

The safe-haven-metal prices stuck in a trading range of $1,804 to $1,811 after hitting the multi-year high to $1,818.17 in the previous day. At this point, the gold buyers were satisfied, possibly due to the lack of major directives. The yellow-metal have managed a rally from $1,756 to $1,818, a nine-year high, in the last three trading days. 

The safe-haven-metal prices stuck in a trading range of $1,804 to $1,811 after hitting the multi-year high to $1,818.17 in the previous day. At this point, the gold buyers were satisfied, possibly due to the lack of major directives. The yellow-metal have managed a rally from $1,756 to $1,818, a nine-year high, in the last three trading days. 

The safe-haven-metal prices stuck in a trading range of $1,804 to $1,811 after hitting the multi-year high to $1,818.17 in the previous day. At this point, the gold buyers were satisfied, possibly due to the lack of major directives. The yellow-metal have managed a rally from $1,756 to $1,818, a nine-year high, in the last three trading days. 

However, the bullion gains could be attributed to the noise surrounding the record surge in the U.S. coronavirus (COVID-19) cases and the Sino-American tension that initially favored the risk-off market tone. As well as, the broad-based U.S. dollar weakness triggered by the declines in the U.S. bond yield, also impressed gold bulls. 

The yellow metal prices are currently trading at 1,811.00 and consolidating in the range between 1,806.12 and 1,812.09. However, traders were cautious about placing any strong position due to light trading ahead. The downbeat market sentiment could be associated with the fresh report of coronavirus, which fueled the possibility of renewed lockdown and dampened prospects for a sharp V-shaped global economic recovery. 

As per the latest report, the U.S. cases crossed a total of 3.0 million marks with a rise of over 60,000. Moreover, the latest update from the Texas Health Department suggested new cases increase by 9,979 to 220,564 on Wednesday, the biggest daily increase since pandemic started. On the other hand, the coronavirus cases in Tokyo dropped to 75, the first below-100 figure in the last 7-days. Apart from this, Victoria also marked a lower figure of 134 against 191 on the previous day. Moreover, China offered positive vibes about virus cases while keeping its zero virus case level, which helped the equity market limit its losses.

Elsewhere, the risk-off market sentiment was further bolstered by the release of the China data, which showed continued deflation in factory-gate prices. At the data front, China’s producer price index (PPI), which measures costs for goods at the factory gate, was dropped by 3.7% year-on-year in June, against a rise to -3.2% from May’s figures of -3.7%. Meanwhile, China’s consumer price index (CPI), a main gauge of inflation, also decreased by 0.1% month-on-month in June, missing the expected rise to 0% from -0.8%. However, this data report also weighed over the global equity markets, triggered a flight to safety.

However, the tussle between China and the U.S., the U.K., and India remained on the card. The U.S. diplomats continued to attack China with harder policies. Whereas, U.S. Secretary of State Mike Pompeo recently announced visa restrictions on some Chinese diplomats over Tibet issue, which also favored the risk-off mood. In the meantime, the Trump administration official also attended talks with others to undermine the Hong Kong dollar peg to punish China.

Despite the ever-increasing number of new coronavirus cases and the possibility of renewed lockdowns, the broad-based U.S. dollar failed to gain any positive traction and edged lower on the day. Although, the losses in the U.S. kept the gold prices higher 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 slipped 0.16% to 96.213 by 12:21 AM ET (5:21 AM GMT).


On the positive side, the investors were confident about the vaccine race as US Fauci said Phase 3 vaccine trials might begin at the end of July. It should be noted that the researchers around the world are developing more than 145 vaccines against coronavirus. Whereas, there are currently 21 vaccines are in human trials as per the New York Times vaccine tracker. 

The yellow metal gold has disrupted the 1786 resistance, and now it’s trading below 1,818 level, which is likely to extend solid resistance to gold today. Gold can trade sideways in between 1800 to 1,819 level today. Bullish bias seems dominant in gold. Good luck! 

Entry Price – Sell 1804.75

Stop Loss – 1812.25

Take Profit – 1797.25

Risk to Reward – 1

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

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

XPT/USD – How Expensive Is It To Trade This Commodity Asset Class?

Introduction

Introduction

Introduction

Platinum is one of the rarest precious metal found in the Earth’s crust. Only a few hundred tons are produced annually. The name Platinum is derived from a Spanish word platina (little silver).

Similar to how other precious metals like Gold and Silver are traded in the exchange market, Platinum is also actively traded in the market. Its ISO code is XPT and is highly traded against the US Dollar with the ticker XPT/USD.

Understanding XPT/USD

Platinum is a precious metal that is measured in troy ounces (Oz). The market price of XPT/USD represents the value of the US Dollar for one troy oz of Platinum. It is quoted as 1 XPT per X USD. For instance, if the current market price of XPT/USD is 814.50, then it means that each oz of Pl is worth 814.50 USD.

XPT/USD Specification

Spread

It is the difference between the bid and the ask prices. The typical spread in Platinum is usually around 700 pips.

Fee

Unlike currency pairs, Platinum is traded as a Contract for difference (CFD). There are three different types of the fee charged for such trades:

  • Commission charge
  • Overnight fee

Thus, the total fee will be,

Total fee = Spread + commission + overnight

For our example, we shall ignore the overnight fee as it completely depends on how long aa trader is willing to hold his positions. So, the revised fee will be,

Total fee = Spread + commission = 700 + 200 = 900 pips

Trading Range in XPT/USD

The trading range is a representation of volatility in the pair for different time frames in a tabular format. It gives the minimum, average, and maximum volatility in the pair for various time frames.

Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

XPT/USD Cost as a Percent of the Trading Range

Cost as a % of the trading range illustrates the variation in the cost of trade by considering the time frame and volatility of the instrument. Mathematically, it is the ratio of the volatility value and the total cost represented in terms of a percentage.

Total fee = Spread + commission = 700 + 200 = 900 pips

Trading the XPT/USD

Platinum is one of the highly traded commodities in the exchange market. But its trading volume is lesser than Gold Spot and Silver Spot. Nonetheless, it has enough volatility and liquidity for retail traders to participate in the market.

Platinum is primarily driven by supply and demand that comes from fundamental factors. These factors are different from that of Gold and Silver, yet some do apply on Pl. When it comes to technical analysis, all the techniques apply that is used in other markets.

As mentioned, Platinum is traded as CFD, and each trade has a commission, overnight, and spread involved in it. This fee is fixed irrespective of the volatility of the market and the time frame traded. But there is a catch here. Even though the fee is fixed, the fee varies relatively. Meaning, a trader aiming high profit must pay the same fee as a trader aiming for small profits. The former is typically a large time frame trader, while the latter is a trader trading relatively smaller time frame.

Since the timeframe is something that cannot be fixed, one can relatively reduce costs by considering the volatility of the market. As the above table evidently depicts, as the volatility increases, the relative fee on the trade decreases. Thus, one must consider trading when the volatility of the pair is at or above the average volatility.

Categories
Forex Signals

Choppy Session in Gold Continues – Brace for a Breakout! 

The safe-haven-metal prices failed to stop its previous day losing streak and remained depressed around $1772 from the multi-year highs level, mainly due to the risk-on market sentiment that was backed by the release of positive data from the U.S. and China. On the other hand, the ever-increasing number of COVID-19 cases globally and simmering tensions between the U.S. and China turned out to be the key factors that kept a lid on any additional losses in the gold prices. However, the selling bias surrounding the U.S. dollar might turn out to be the only factor giving some support to the dollar-denominated commodity (gold) and limiting deeper losses. The yellow metal prices are currently trading at 1,773.74 and consolidated in the range between the 1,772.95 – 1,777.16.

The safe-haven-metal prices failed to stop its previous day losing streak and remained depressed around $1772 from the multi-year highs level, mainly due to the risk-on market sentiment that was backed by the release of positive data from the U.S. and China. On the other hand, the ever-increasing number of COVID-19 cases globally and simmering tensions between the U.S. and China turned out to be the key factors that kept a lid on any additional losses in the gold prices. However, the selling bias surrounding the U.S. dollar might turn out to be the only factor giving some support to the dollar-denominated commodity (gold) and limiting deeper losses. The yellow metal prices are currently trading at 1,773.74 and consolidated in the range between the 1,772.95 – 1,777.16.

The safe-haven-metal prices failed to stop its previous day losing streak and remained depressed around $1772 from the multi-year highs level, mainly due to the risk-on market sentiment that was backed by the release of positive data from the U.S. and China. On the other hand, the ever-increasing number of COVID-19 cases globally and simmering tensions between the U.S. and China turned out to be the key factors that kept a lid on any additional losses in the gold prices. However, the selling bias surrounding the U.S. dollar might turn out to be the only factor giving some support to the dollar-denominated commodity (gold) and limiting deeper losses. The yellow metal prices are currently trading at 1,773.74 and consolidated in the range between the 1,772.95 – 1,777.16.

At the U.S. data front, the report of NFP showed that the U.S. economy built 4.8 million jobs in June against market expectations of 3 million. Whereas, the previous month’s reading was also recovered higher to +2.699 million as against 2.509 million reported earlier. In the meantime, the unemployment rate dropped more than expected to 11.1% from 13.3% previously, which boosted the investor’s confidence as they believe that the worse of the coronavirus pandemic was behind us.

At the China data front, China reported a Caixin Services Purchasing Manager’s Index (PMI) of 58.4 for June on the day, which surpassed the previous month’s readings of 55. Let me remind you; this was the highest PMI reading in two months.

On the other hand, the optimism about the positive results from the potential COVID-19 vaccine has remained supportive of the market mood, which tends to weaken demand for traditional safe havens and exerted some pressure on the yellow metal.

Apart from this, the on-going concerns over a second economic lockdown in the U.S. due to the surging number of confirmed coronavirus cases assisted the yellow-metal to keep a lid on any additional losses.

As per the latest report, the United States reported record coronavirus cases for the 3rd-straight day on Thursday with 52,789 latest numbers. In the meantime, Florida reported 10,109 new cases, while Texas recorded 7,915 new cases during the previous day. The record hike in the virus cases urges the Trump administration to think about the second economic lockdown, which weighs on the economic sentiment. However, this intensifying pandemic situation turned out to be one of the key factors that kept a lid on any additional losses in the gold.

At the Hong Kong front, the on-going tussle between the United States and China over the Hong Kong security law got an additional boost as U.S. Secretary of State Mike Pompeo recently criticized China’s Communist Party’s (CCP) decision on the Hong Kong security law by tweeting during the early Friday morning in Asia. As per the tweet, “The CCP implemented its national security law on Hong Kong, in violation of the commitments it made to the Hong Kong people– and disregarding Hong Kongers’ human rights and fundamental freedoms. 

In the meantime, the Hong Kong activist Nathan Law said during the early Friday morning in Asia that the human rights activists showed concern against Chinese security law and urged global leaders to help get justice. Elsewhere, the latest report suggests that many Hong Kong business people and experts are seriously considering leaving Hong Kong due to China’s crackdown.

However, this matter could exert additional downside pressure on the market’s risk-tone sentiment recently weighed down by the coronavirus (COVID-19) concerns. Whereas, the reason behind previous day declines could also be associated with the reports that showed India’s imports dropped 86% YoY in June. At the data front, the world’s second-biggest consumer of the yellow-metal imported around 11 tonnes of gold in June, down from 77.73 tonnes a year ago. In the meantime, the June imports dropped to $608.76 million from $2.7 billion a year ago as per value terms.


Daily Support and Resistance

S1 1726.83

S2 1749

S3 1762.59

Pivot Point 1771.17

R1 1784.76

R2 1793.34

R3 1815.51

The precious metal gold technical side hasn’t improved a lot. Overall, the XAU/USD is trading in a broad trading area of 1,776 to 1,766 levels. The bullish trendline on the one hour chart is supporting the bullish sentiment in gold. On the lower side, support for gold commands around the 1,759 and 1,749 levels. On the other hand, a bullish breakout on the 1,776 level could lengthen the buying bias to the 1,789 mark. Looking at the technical indicators, the RSI, MACD, and 50 periods EMA are supporting the gold’s bullish bias today. Good luck and happy weekend! 

Categories
Forex Signals

Gold’s Choppy Session Continues – Traders Eye on U.S. GDP! 

The safe-haven-metal prices flashed green and drew bids around the $1,766 level, mainly due to the risk-off market sentiment backed by the Virus fears, trade war, and many more, which eventually underpinned the safe-haven demand in the market and contributed to the gold gains. As a result of high safe-haven demand, the broad-based U.S. dollar climbed from the previous session low as Jump in Covid-19 Cases Boosted Safe-Haven Demand, which becomes one of the main thing that kept a lid on any additional profits in the gold prices. At the press time, the yellow metal prices are currently trading at 1,763.20 and consolidating in the range between 1,755.49 and 1,766.12.

The safe-haven-metal prices flashed green and drew bids around the $1,766 level, mainly due to the risk-off market sentiment backed by the Virus fears, trade war, and many more, which eventually underpinned the safe-haven demand in the market and contributed to the gold gains. As a result of high safe-haven demand, the broad-based U.S. dollar climbed from the previous session low as Jump in Covid-19 Cases Boosted Safe-Haven Demand, which becomes one of the main thing that kept a lid on any additional profits in the gold prices. At the press time, the yellow metal prices are currently trading at 1,763.20 and consolidating in the range between 1,755.49 and 1,766.12.

The safe-haven-metal prices flashed green and drew bids around the $1,766 level, mainly due to the risk-off market sentiment backed by the Virus fears, trade war, and many more, which eventually underpinned the safe-haven demand in the market and contributed to the gold gains. As a result of high safe-haven demand, the broad-based U.S. dollar climbed from the previous session low as Jump in Covid-19 Cases Boosted Safe-Haven Demand, which becomes one of the main thing that kept a lid on any additional profits in the gold prices. At the press time, the yellow metal prices are currently trading at 1,763.20 and consolidating in the range between 1,755.49 and 1,766.12.

At the coronavirus front, the on-going increase in the ratio of hospitalized peoples in Texas and California as well as the rising figures of coronavirus cases in Florida fueled the fears of the second wave and considered as a news epicenter of the coronavirus (COVID-19) across the world which eventually put downside pressure on the risk sentiment and provided support to the safe-haven assets. As per the latest report, the U.S. had the most massive single-day total of new COVID-19 cases on Wednesday, with over 36,000 figures.

Moreover, the reason for the risk-off market sentiment could also be attributed to the fresh geopolitical concerns. The Trump administration recently exhabit a willingness to impose new tariffs of $3.1 billion EU/UK goods. As in result, the European Union has criticized U.S. warnings to hit $3.1bn of European products while complaining that this tariff would further harm the E.U. companies, which were already damaged from Covid-19, which eventually added strength to the risk-off market sentiment.

Apart from this, Trump has ordered U.S. Trade Representative to keep check whether China is buying U.S. lobsters under the phase 1 trade deal. As well as, he also warned to impose reciprocal tariffs on China, which also weighed on the risk-tone sentiment. Elsewhere, the US-China trade deal still not showing any progress, which offered an extra burden on the risk-tone.

The risk-off market sentiment was further bolstered by the statement of the U.S. Federal Bureau of Investigation (FBI) Director Christopher Wray that China was the most comprehensive threat to the United States, in consideration of the cyber-theft, coronavirus mishandling, etc.

As we all well aware that the coronavirus outbreak hit the global consumption deeper than expected. As in result, the International Monetary Fund IMF (Washington based institute) expected the global economy to shrink by 5.0% in 2020 versus the April month forecast of 3.0%. Whereas, the key organization also showed the need for further policy measures to control the virus.

As in result, the U.S. 10-year Treasury yields drop to 0.674% while stocks in Japan and Australia also flashed losses at the press time. It’s worth mentioning that markets in China and Hong Kong are off today.

At the USD front, the broad-based U.S. dollar extended its overnight gains and rose sharply from the session’s low mainly due to renewed safe-haven demand on fears of the second wave as coronavirus cases continue to mount. Looking forward, the market participant will keep their eyes on the trade/virus updates for near-term direction.

.



    

Daily Support and Resistance

S1 1696.96

S2 1717.81

S3 1730.63

Pivot Point 1738.66

R1 1751.48

R2 1759.51

R3 1780.36

Gold is trading sideways in a tight trading range of 1,765 – 1,758 level, and it’s currently trading at 1,760 level, holding right over a subsequent support level of 1,758. Above this, the precious metal gold can drive the XAU/USD prices towards 1,773 and 1,778 while support extends to endure nearby 1,750 and 1,753. A bearish breakout of 1,758 can help us capture a quick sell trade in gold today. Again it all depends upon the U.S. GDP and Jobless Claims data. Good luck! 

Categories
Forex Signals

Gold on a Bullish Run Amid Safe Haven Appeal – Update on Signal! 

During Friday’s early Asian trading session, the safe-haven-metal prices still consolidate into the overnight confined range around the 1,725 level, mainly due to mixed trading sentiment in the market. However, the bullish trend in the yellow-metal remains as long as it trades above the $1700 level. The prices of gold dropped sharply yesterday from the high of 1738, mainly after the upbeat U.S. data and positive reports from China that they overcame the coronavirus outbreak. 

During Friday’s early Asian trading session, the safe-haven-metal prices still consolidate into the overnight confined range around the 1,725 level, mainly due to mixed trading sentiment in the market. However, the bullish trend in the yellow-metal remains as long as it trades above the $1700 level. The prices of gold dropped sharply yesterday from the high of 1738, mainly after the upbeat U.S. data and positive reports from China that they overcame the coronavirus outbreak. 

During Friday’s early Asian trading session, the safe-haven-metal prices still consolidate into the overnight confined range around the 1,725 level, mainly due to mixed trading sentiment in the market. However, the bullish trend in the yellow-metal remains as long as it trades above the $1700 level. The prices of gold dropped sharply yesterday from the high of 1738, mainly after the upbeat U.S. data and positive reports from China that they overcame the coronavirus outbreak. 

As of now, the reason for the modest gains in the gold prices could be attributed to the fears of the second wave of COVID-19 and geopolitics tensions. At the press time, the yellow metal is currently trading at 1,726.16 and consolidates in the range between the 1,721.59 – 1,727.41.

As we are all well aware that the weekly jobless claims report showed an improvement compared to the previous week’s figures. However, the minor declines were backed by the pace of re-openings across the U.S. Weekly first-time unemployment claims dropped by 58,000 to 1.508 million in the week ended June 13, which provided some support to the risk sentiment.

The fears over the coronavirus resurgence remain on the card as Beijing reported 25 new COVID-19 cases on Thursday, while the Xinfadi market now faced almost 200 cases so far, which overshadowed the optimism over the ‘under control’ situation, as said by the Chinese official on Thursday.  

Despite US-China having political differences, both sides recently showed a willingness to keep talking on the trade deal, which exerted some positive impact on the risk sentiment and becomes one of the major factors that holds a lid on any further gains in the gold prices.



The yellow metal gold is currently trading with a bullish bias, crossing above a substantial resistance area of 1,731. Above this, bullish bias can be seen until the next resistance level of 1,733 and 1,737. While the closing of candle or violation of 1,731 will extend buying until the next target level of 1,744. Consider this, we took a buy trade at 1,729 level today. 

 

Entry Price – Buy 1729.06        

Stop Loss – 1723.06        

Take Profit – 1735.06

Risk to Reward – 1

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

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

Categories
Forex Signals

Gold Sideways Trading Continues – Watchout Quick Trade Setup!

The safe-haven asset failed to break its previous session’s confined trading range near below $1,730 level but erased its some losses from an intraday low mainly due to the risk-off market sentiment triggered by the fresh US-China tension. The second wave of coronavirus (COVID-19) also fueled the risk-off market tone, which eventually provided some support to the gold prices. At the moment, the yellow-metal press is currently trading at 1,724.06 and consolidating in the range between 1,717 and 1,730.07.

The safe-haven asset failed to break its previous session’s confined trading range near below $1,730 level but erased its some losses from an intraday low mainly due to the risk-off market sentiment triggered by the fresh US-China tension. The second wave of coronavirus (COVID-19) also fueled the risk-off market tone, which eventually provided some support to the gold prices. At the moment, the yellow-metal press is currently trading at 1,724.06 and consolidating in the range between 1,717 and 1,730.07.

The safe-haven asset failed to break its previous session’s confined trading range near below $1,730 level but erased its some losses from an intraday low mainly due to the risk-off market sentiment triggered by the fresh US-China tension. The second wave of coronavirus (COVID-19) also fueled the risk-off market tone, which eventually provided some support to the gold prices. At the moment, the yellow-metal press is currently trading at 1,724.06 and consolidating in the range between 1,717 and 1,730.07.

At the US-China front, the top diplomat Jiechi warned U.S. Secretary State Mike Pompeo that China strongly opposed the U.S. interfering in Hong Kong, G7 statement on Hong Kong initially exerted some downside pressure on the risk-tone and contributed to the modest gold gains. In the meantime, the Dragon Nation showed a demanding attitude while saying that the U.S. should handle Taiwan related issues carefully and properly. Apart from this, China also said that the U.S. should respect China’s counter-terrorism efforts in Xinxiang.

Moreover, the reason for the risk-off market sentiment could also be attributed to the intensifying second wave of coronavirus. It should be noted that the U.K.’s second vaccine trials seemed failed to provide any notable result to stop the deadly disease from spreading as Texas showed a record high jump in the hospitalization; likewise, Florida, Arizona, and Oklahoma also showed further cases. Apart from this, Japan’s virus figures rose to the highest since May 30. 

It’s worth recalling that the Dragon Nation recently impose strict measures on air travel as well as used all the possible ways, including renewed lockdown restriction to stop the deadly disease from spreading. 

Moreover, the risk-off market sentiment was further bolstered by the geopolitical tensions between North and South Korea, as well as between India and China, which also had some positive impact on the gold prices. In the meantime, the Asian Development Bank (ADB) trimmed its 2020 growth forecast for Asia from 2.2% to 0.1% also, weighed on the market’s trading sentiment.

As in result, the U.S. 10-year Treasury yields still reported losses around 0.70% while the Asian stocks reported moderate losses by the press time. At the USD front, the broad-based U.S. dollar maintained its earlier gains and stayed above 97 levels mainly due to the growing concern over the spike in COVID-19 cases in China and the U.S. which eventually turned out to be one of the key factors that kept a lid on any additional gains in the gold. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies moved 0.12% to 97.028 by 11:40 PM ET (4:40 AMGMT).

Looking forward, the traders will keep their eyes on the qualitative catalysts for near-term direction. In the meantime, the virus headlines and geopolitical headlines will be the key to watch.


Daily Support and Resistance    

S1 1689.13

S2 1706.35

S3 1716.85

Pivot Point 1723.57

R1 1734.07

R2 1740.79

R3 1758.01

The yellow metal gold is currently trading with a mixed bias, holding below a substantial resistance area of 1,731. Beneath this, bearish bias can be seen until the next support region of 1,717 and 1,714. While the closing of candle or violation of 1,731 will extend buying until the next target level of 1,744. Good luck! 

Categories
Forex Assets

Analyzing The ‘XAU/USD’ Financial Instrument & Determining The Trading Costs Involved

Introduction

Introduction

Introduction

Gold is a precious metal and one of the most valuable assets in the market. It is considered to be a safe haven instrument and a popular asset class for hedging positions during market uncertainty. XAU/USD is the abbreviation for the pair Gold Spot against the US Dollar. XAU is the ticker for Gold Spot. It can be traded against other fiat currencies like EUR and GBP as well.

Understanding XAU/USD

Gold Spot is an asset that is traded in troy ounces (Oz). The XAU/USD market price represents the value of the US Dollar for 1 ounce (Oz) of Gold. It is quoted as 1 XAU per X USD. For example, if the current market price of XAU/USD is 1730.50, it signifies that each ounce of Gold is worth the US $1730.5.

XAU/USD Specification

Spread

Spread is the difference between the bid price and the ask price. The spread usually varies based on the account type used for execution. The approximate spread on the gold spot on ECN account and STP account is as follows:

ECN: 100 | STP: 130

Fee

Typically, brokers do not charge any type of fee. But, on ECN accounts, there is some commission you must pay the broker for opening and closing a position. However, the fee is not significantly high.

Slippage

Due to the high market liquidity and slower broker’s execution speed, slippage occurs. It is the difference between the trader’s demanded price and the price at which the broker executed the trade. Slippage can occur both in favor and against the trader.

Trading Range in XAU/USD

The trading range is a tabular representation of the volatility in the market for several different time frames. It gives the minimum, average, and maximum volatility in the pair for different time frames.

Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

XAU/USD Cost as a Percent of the Trading Range

Cost as a percent of the trading range represents variation in the trade cost by considering the market’s time frame and volatility. Mathematically, it is the ratio of the volatility value and the total cost of the trade.

ECN Model Account

Spread = 100 | Slippage = 30 | Trading fee = 20

Total fee = Spread + Slippage + Trading fee

Total fee = 100 + 30 + 20 = 150 (pips)

STP Model Account

Spread = 130 | Slippage = 30 | Trading fee = 0

Total fee = Spread + Slippage + Trading fee

Total fee = 130 + 30 + 0 = 160 (pips)

The Ideal Timeframe to Trade XAU/USD

Gold is one of the oldest asset classes and one of the most reliable instruments as well. It is extensively traded in the market as most forex broker has XAU/USD available for trading. Its volatility and liquidity are no less than major currency pairs.

XAU/USD can be traded like any other foreign exchange pair. It, in fact, correlates with commodity currencies like AUD and NZD. Thus, traders use these two currencies in addition to USD, in order to analyze the pair. The same technical analysis applied to other markets can be used on the gold spot as well. However, the fundamentals do differ a little.

Coming to the costs, it technically remains the same for any time frame you trade. However, it relatively changes based on volatility and time frame. For example, a 1D trader who makes 2000 pips P/L on an average pays the same a 1H trader who makes 500 pips P/L on a trade. This is the reason the percentage values are higher in the 1H time frame than the 1D time frame.

Irrespective of the time frame you trade, you need to make sure that the market’s current volatility is above the average volatility. If you end trading when the volatility is at the minimum values, then you will have to pay the same costs for a trade that could not reach the target in your expected time.

Categories
Forex Signals

Gold Signal Closed In Profit – Quick Update Today! 

The safe-haven-metal prices failed to maintain its previous day gains and dropped to $1,730 from $1,740, the highest since June 02 while representing 0.35% losses on the day as the broad-based U.S. dollar recently took a U-turn from the multi-day low backed by the fresh US-China tussle and contributed to the yellow-metal losses as they both have an inverse relationship. On the other hand, the risk-off market sentiment triggered by fresh conflict between US-China turned out to be one of the key factors that kept a lid on any additional losses in the gold.  

The safe-haven-metal prices failed to maintain its previous day gains and dropped to $1,730 from $1,740, the highest since June 02 while representing 0.35% losses on the day as the broad-based U.S. dollar recently took a U-turn from the multi-day low backed by the fresh US-China tussle and contributed to the yellow-metal losses as they both have an inverse relationship. On the other hand, the risk-off market sentiment triggered by fresh conflict between US-China turned out to be one of the key factors that kept a lid on any additional losses in the gold.  

The safe-haven-metal prices failed to maintain its previous day gains and dropped to $1,730 from $1,740, the highest since June 02 while representing 0.35% losses on the day as the broad-based U.S. dollar recently took a U-turn from the multi-day low backed by the fresh US-China tussle and contributed to the yellow-metal losses as they both have an inverse relationship. On the other hand, the risk-off market sentiment triggered by fresh conflict between US-China turned out to be one of the key factors that kept a lid on any additional losses in the gold.  

At the USD front, the broad-based U.S. dollar drew bids on the day as investors lose their confidence about sharp economy recovery after details came from the U.S. Federal Reserve’s policy meeting the day before. The U.S. economy will collapse 6.5% this year, and the unemployment rate will be 9.3% by the end of the year, as per the Fed quarterly projections. The reason for the upticks in the U.S. dollar could also be attributed to the fresh on-ging tussle between the United States and China, which eventually fueled the risk-off market sentiment. 

The U.S. dollar was dropped to the lowest since March 10 instantly after the U.S. central bank hit a dovish tone the previous day. Wherein the U.S. Federal Open Market Committee (FOMC) decided to keep the benchmark rate unchanged. In the meantime, U.S. President Donald Trump’s cheer the Fed’s action.

Apart from this, the risk-off market sentiment was further bolstered by the fears of the coronavirus (COVID-19) second wave. The reason behind the risk-off market sentiment could also be associated with the report of the OECD latest Economic Projections. Wherein the report indicated the downside fears for the global economy due to the coronavirus (COVID-19).

Looking forward, the US-China tussle will gain market attention due to the light calendar and become worth watching for a near-term direction. At the data front, the U.S. Weekly Jobless Claims and Producer Price Index for May will be key to wait for new moves in the pair.


The yellow metal gold was on a bullish break due to the dovish FOMC strategy, where FED stated interest rates are expected to linger on hold until 2022. While they are expecting deflation in GDP, the weaker dollar is encouraging buying in gold; consequently, we may see gold prices flying higher until 1,745 in the coming days. Exactly before this, the overbought gold may sink a bit unto 1,726 range to achieve retracement. So, the immediate support for gold exists at 1,726 and 1,718 levels, while resistance visits at 1,738 and 1,745. So it was a good idea to close at in profit around 1,736 level as the market reversed right after that. 

Entry Price – Buy 1733.15    

Stop Loss – 1728    

Take Profit – 1740.15

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$450/ +$600

Profit & Loss Per Micro Lot = -$45/ +$600

Categories
Forex Signals

Gold Slips Sharply Amid Stronger NFP Figures – Quick 100 Pips in Secured! 

The precious metal gold prices fell sharply from 1,694 level to 1,671 level on the release of U.S. NFP figures. Earlier today, the gold was supported as the concerns between the United States and China getting worse day by day and not showing any sign of slowing down, rather U.S. Secretary of State Mike Pompeo showed love about Nasdaq’s move on listing rules for Chinese companies. 

The precious metal gold prices fell sharply from 1,694 level to 1,671 level on the release of U.S. NFP figures. Earlier today, the gold was supported as the concerns between the United States and China getting worse day by day and not showing any sign of slowing down, rather U.S. Secretary of State Mike Pompeo showed love about Nasdaq’s move on listing rules for Chinese companies. 

The precious metal gold prices fell sharply from 1,694 level to 1,671 level on the release of U.S. NFP figures. Earlier today, the gold was supported as the concerns between the United States and China getting worse day by day and not showing any sign of slowing down, rather U.S. Secretary of State Mike Pompeo showed love about Nasdaq’s move on listing rules for Chinese companies. 

The US-China tussle was further bolstered by U.S. President Donald Trump’sTrump’s comments that the Chinese government has continually violated its promises to the U.S. and many other countries which exerted some downside pressure on the risk sentiment and turned out to be one of the major event that kept a lid on any gains in crude oil. Despite this, the U.S. Trade Representative Robert Lighthizer said that he feels “”excellent”” about phase one trade deal with the Dragon nation.

The recent dip in the gold prices came over stronger U.S. dollar. Total nonfarm payroll employment grew by 2.5 million in May, and the unemployment rate decreased to 13.3%, which drove sharp buying in the U.S. dollar, and dramatic selling in the gold prices. 


Technically gold has completed the ABCD pattern from 1,721 to 1,672 level. Closing of candles above 1,672 can drive bullish correction until 1,687 level before driving further selling until 1,660. We are already out of gold trade and secured 100 pips; however, check out the trade idea below. 

Entry Price – Sell 1702.86        

Stop Loss – 1710.86        

Take Profit – 1692.22

Risk to Reward – 1.20

Profit & Loss Per Standard Lot = -$800/ +$1000

Profit & Loss Per Micro Lot = -$80/ +$100

Categories
Forex Videos

Gold VS Fiat currencies – What You Should Be Doing!

https://youtu.be/Cqni5scYfvM

https://youtu.be/Cqni5scYfvM

 

Gold vs. Fiat currencies – What to do?

Gold markets have rallied quite a bit during the trading session on Friday. The rally was most likely caused by people that want to preserve their holdings since they find the situation around the world concerning. On top of that, central banks are running their printing presses at full tilt, bringing even more uncertainty to the market. Ultimately, everything suggests that we should see fiat currencies slowly get devalued.
The gold market, on the other hand, is the natural place to go looking to protect your holdings from value drops.

Looking at the chart, even though gold looks quite bullish, the resistance between the $1740 level and the $1760 level might pose a problem. If gold can break above this area, then the market is most likely going towards the $1800 level without many stops. Ultimately, the $1800 level itself is significant resistance, so breaking above it and establishing support would mean much for the future of gold. With all of the various concerns all around the world when it comes to global trade, the pandemic as well as constant fiat printing, it is hard to imagine a scenario where gold doesn’t rise over the long term against the US dollar.

The fiat currency market will have to seek equilibrium and find what the right price is for all the pairs as countries dealt with the global problems differently. This, in turn, affected their economies and currencies differently. Fundamental analysis should be at the forefront of FOREX analysis at the moment.

Categories
Forex Signals

Gold Violated Upward Channel – Stronger Dollar to Drive Sell-off! 

The safe-haven-metal prices failed to stop its previous day losing streak and dropped to $1,725.96 while representing 0.12% losses on the day as the US President Donald Trump did not use military power to stop the riots which fueled the risk-on market sentiment and pushed investors to withdraw their money from the safe-haven assets. 

The safe-haven-metal prices failed to stop its previous day losing streak and dropped to $1,725.96 while representing 0.12% losses on the day as the US President Donald Trump did not use military power to stop the riots which fueled the risk-on market sentiment and pushed investors to withdraw their money from the safe-haven assets. 

The safe-haven-metal prices failed to stop its previous day losing streak and dropped to $1,725.96 while representing 0.12% losses on the day as the US President Donald Trump did not use military power to stop the riots which fueled the risk-on market sentiment and pushed investors to withdraw their money from the safe-haven assets. 

The reason for the risk-on market sentiment could also be attributed to the slight optimism surrounding the coronavirus vaccine and the hopes of the economic restart, which also exerted some downside pressure on the yellow metal. The gold is currently trading at 1,726.49 and consolidating in the range between 1,721.04 and 1,732.12.

The tensions in the United States are showing the sign of slowing down mainly after the news that US President Donald Trump’s stepped back from its previous day’s decision to use Federal militaries to stop the on-going protests near White house, which eventually boosted the risk-on market sentiment. Moreover, the risk-on tone was further bolstered by the key US medical officer’s cautious optimism regarding the coronavirus (COVID-19) vaccine. As a result, the US 10-year Treasury yields gain 1.8 basis points (bps) to 0.697% while stocks in Japan, Australia, and China also report gains.

Looking forward, the market participants will keep their eyes on the US ISM Non-Manufacturing PMI, Factory Orders, and ADP Employment Change data. The US-China tussle and protest updates will not lose their importance.



Gold is still consolidating in a sloping trading area of 1,743 – 1,724, though it’s facing a hard time to violate beneath 1,724 level to touch 1,714 level. Closing of candles beneath 1,724 level today can force selling bias unto 1,717 and 1,714, particularly on the announcement of better than expected ADP non-farm payroll from the USA while resistance exists at 1,729 today.

Entry Price – Sell 1721.44    

Stop Loss – 1727.44    

Take Profit – 1715.44    

Risk to Reward – 1.00

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

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

Categories
Forex Signals

Safe Haven Boosts Gold – Who’s Up for Bullish Trade? 

The precious metal gold is trading with a bullish bias around 1,742 area, bouncing off above start support level of 1,736 level on the 4-hour chart. Most of the buying is fundamentally driven as the broad-based U.S. dollar is experiencing a sell-off on the day as investors turned into the safe-haven assets due to the latest retaliation between the U.S. and China. 

The precious metal gold is trading with a bullish bias around 1,742 area, bouncing off above start support level of 1,736 level on the 4-hour chart. Most of the buying is fundamentally driven as the broad-based U.S. dollar is experiencing a sell-off on the day as investors turned into the safe-haven assets due to the latest retaliation between the U.S. and China. 

The precious metal gold is trading with a bullish bias around 1,742 area, bouncing off above start support level of 1,736 level on the 4-hour chart. Most of the buying is fundamentally driven as the broad-based U.S. dollar is experiencing a sell-off on the day as investors turned into the safe-haven assets due to the latest retaliation between the U.S. and China. 

China stops the purchases of American soybeans and other U.S. agricultural goods. The reason for the weaker U.S. dollar could be attributed to the second wave of coronavirus. Moreover, the gains were further bolstered by the intensifying protest in dozens of U.S. cities over the death of George Floyd, which exerted some bullish impact on the safe-haven U.S. dollar and kept the gold prices under pressure. While 

Protesters occupying the area near the White House against the alleged killing of Minnesota’s George Floyd. As in result, U.S. President Donald Trump showed a willingness to use all the possible ways like “military or social” to take the situation under control. The absence of major data/events also contributed to the bullion’s profit-booking moves. Looking forward, due to the light calendar, the traders will keep their eyes on the qualitative catalysts for fresh impulse.


At this point, gold is likely to close three white soldiers ion 4-hour candles, which may lead the gold prices further higher until 1,749 area. On the higher side, gold’s immediate resistance holds at 1,742, and closing of above this level will confirm the bullish signal. On the higher side, we have placed buy trade at 1743.32 with a take profit at 1749.32 along with a stop loss around 1737.32    

Entry Price – Buy 1743.32    

Stop Loss – 1737.32    

Take Profit – 1749.32    

Risk to Reward – 1.00

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

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

Categories
Forex Signals

Gold Violates Triple Top Pattern – Quick Update on Buy Signal! 

The yellow metal gold prices surged above $1735 and continued its two days upward rally and posted gains for 3rd consecutive day. The demand for the safe-haven asset increased at the end of the week due to increased uncertainty in the market after the comments of the chairman of the Federal Reserve & the President of the United States on Friday.

The yellow metal gold prices surged above $1735 and continued its two days upward rally and posted gains for 3rd consecutive day. The demand for the safe-haven asset increased at the end of the week due to increased uncertainty in the market after the comments of the chairman of the Federal Reserve & the President of the United States on Friday.

The yellow metal gold prices surged above $1735 and continued its two days upward rally and posted gains for 3rd consecutive day. The demand for the safe-haven asset increased at the end of the week due to increased uncertainty in the market after the comments of the chairman of the Federal Reserve & the President of the United States on Friday.

The Federal Reserve Chairman, Jerome Powell on Friday defended an aggressive action to shield the U.S. economy from the coronavirus pandemic crisis and said that the central bank was days away from launching its Main Street Lending Program.

Powell added that Americans must feel safe and confident while shopping, eating at restaurants, or visiting public places without risking of catching infection for quick economic recovery, and that can only be done after tracking the spread of the virus, which has become more important measure than economic data. 


Taking a look at the technical side of the market, the XAU/USD is trading at 1,741 after having violated the 1,737 resistance level, which is now working as a support for gold. Above this level, gold still has odds of trading bullish until the next target level of 1,749/51. The leading indicator, such as MACD and 50 periods EMA are suggesting chances of bullish trend continued until the next target level of 1,752.  

Entry Price – Buy 1743.01    

Stop Loss – 1737.01    

Take Profit – 1749.01        

Risk to Reward – 1.00

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

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

Categories
Forex Signals

XAU/USD Trades Bullish Amid Trade Tensions – Update on Buy Signal! 

The safe-haven-metal prices took bids and rose to $1,721 while represented 0.15% gains on the day due to the risk-off market sentiment in the wake of intensifying tussle between the United States and China over Hong Kong. As well as, the US dollar selling bias also boosted the yellow-metal. At the press time, the safe-haven-metal prices are currently trading at 1,720.83 and consolidating in the range between 1,712.92 and 1,722.94. However, investors are cautious about placing any position ahead of an expected announcement by President Donald Trump on China later in the day.

The safe-haven-metal prices took bids and rose to $1,721 while represented 0.15% gains on the day due to the risk-off market sentiment in the wake of intensifying tussle between the United States and China over Hong Kong. As well as, the US dollar selling bias also boosted the yellow-metal. At the press time, the safe-haven-metal prices are currently trading at 1,720.83 and consolidating in the range between 1,712.92 and 1,722.94. However, investors are cautious about placing any position ahead of an expected announcement by President Donald Trump on China later in the day.

The safe-haven-metal prices took bids and rose to $1,721 while represented 0.15% gains on the day due to the risk-off market sentiment in the wake of intensifying tussle between the United States and China over Hong Kong. As well as, the US dollar selling bias also boosted the yellow-metal. At the press time, the safe-haven-metal prices are currently trading at 1,720.83 and consolidating in the range between 1,712.92 and 1,722.94. However, investors are cautious about placing any position ahead of an expected announcement by President Donald Trump on China later in the day.

It should be noted that the futures tied to the S&P 500, Wall Street’s benchmark index, was down 0.6%. Asian stocks also flashed red with Australia’s S&P/ASX 200 index leading the way lower with a 1.11% decline. 

As we all well aware that China has imposed the controversial security law on Hong Kong to curb the City’s autonomy earlier this week. In return, the US had warned that they would impose bans on China if China moves ahead with this law. So, the law has been implemented now, and all eyes are on President Trump’s actions ahead.


The XAU/USD prices are now holding below 1,725 level, which is extending resistance to gold, but the close of recent bullish engulfing candle is suggesting chances of further buying in gold. The downward channel seems to get violated now, and it’s keeping the gold in a bullish mode. We can try to capture a quick buy trade in gold in order to secure profit until 1,728 level. The RSI is also taking an upward turn and may cross below 50 to supported selling bias. 

Entry Price – Buy 1722.93    

Stop Loss – 1716.93    

Take Profit – 1729.93    

Risk to Reward – 1.17

Profit & Loss Per Standard Lot = -$700/ +$800

Profit & Loss Per Micro Lot = -$70/ +$80

Categories
Forex Signals

XAU/USD Trades Bullish Amid Trade Tensions – Update on Sell Signal! 

The yellow metal gold traded sharply bullish to hold around 1,720 area. Most of the buying in gold was safe haven driven, leading the gold prices towards the highs of 1,726. Below this, the XAU/USD is likely to close a doji candle, which suggests odds of bearish bias retracement in gold.

The yellow metal gold traded sharply bullish to hold around 1,720 area. Most of the buying in gold was safe haven driven, leading the gold prices towards the highs of 1,726. Below this, the XAU/USD is likely to close a doji candle, which suggests odds of bearish bias retracement in gold.

The yellow metal gold traded sharply bullish to hold around 1,720 area. Most of the buying in gold was safe haven driven, leading the gold prices towards the highs of 1,726. Below this, the XAU/USD is likely to close a doji candle, which suggests odds of bearish bias retracement in gold.

The risk appetite was still there in the market after the news of potential vaccine and drug for coronavirus. A company named Merck & Co., famous for its work on developing vaccines for Ebola, said on Tuesday that it was working on a drug to cure the infection and two vaccines to prevent it.

This optimism that the world would leave coronavirus behind it and start its routine before the vaccine development added in the pair’s gains. Besides, the statement from the U.S. came in and intensified the US-China anxieties. A day before, the United States Secretary of State, Mike Pompeo, notified the U.S. Congress that the Trump administration no longer consider Hong Kong as autonomous from mainland China which is also hiking safe-haven appeal in gold.


The XAU/USD prices are now holding below 1,724 level which is extending resistance to gold. It’s a downward channel which is keeping the gold underpressure around this level. We can try to capture a quick sell trade in gold in order to secure a correction until 1,713 level. The RSI is also taking a downward turn and may cross below 50 to supported selling bias. 

Entry Price – Sell 1721.14    

Stop Loss – 1728.14    

Take Profit – 1713.14

Risk to Reward – 1.14

Profit & Loss Per Standard Lot = -$700/ +$800

Profit & Loss Per Micro Lot = -$70/ +$80

Categories
Forex Signals

XAU/USD Soars Amid Renew US-China Tensions – Update on Buy Signal! 

The yellow metal gold traded sharply bullish to hold around 1,719 area. Most of the buying in gold was safe haven driven, which lead the gold prices towards the high’s of 1,719 level. 

The yellow metal gold traded sharply bullish to hold around 1,719 area. Most of the buying in gold was safe haven driven, which lead the gold prices towards the high’s of 1,719 level. 

The yellow metal gold traded sharply bullish to hold around 1,719 area. Most of the buying in gold was safe haven driven, which lead the gold prices towards the high’s of 1,719 level. 

The statement from the U.S. came in and intensified the US-China anxieties. A day before, the United States Secretary of State, Mike Pompeo, notified the U.S. Congress that the Trump administration no longer consider Hong Kong as autonomous from mainland China.

Consequently, the demand for safe-haven assets got boosted as the U.S. withdraw preferential trade and financial standing that the previous British colony has owned since it was handed to China in 1997. It suggests all U.S. tariffs on China would spread to Hong Kong as well. It would also make a trip to the U.S. for Hong Kong citizens more complicated and would likely cause the departure of many refugees residing and operating in Hong Kong.

The XAU/USD prices traded sharply bullish soaring from 1,710 level to place a high around 1,719 level. The resistance level of 1,723 will be eyed now extended by a downward channel and can be seen on the 4-hour timeframe. The XAU/USD’s support is likely to be found around 1,710 and 1,702. Consider taking buying trades over 1,716 today. 


Entry Price – Buy 1716.63    

Stop Loss – 1710.63    

Take Profit – 1722.63    

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$500/ +$500

Profit & Loss Per Micro Lot = -$500/ +$500

Categories
Forex Signals

Safe Haven Gold Slips – Downward Channel In Play! 

Gold prices were closed at $1710.53 after placing a high of $1735.38 and a low of $1708.78. Overall the movement of gold remained bearish throughout the day. Gold prices followed its previous day’s trend and continued to fall on Tuesday and reached near the level of $1700 support on the back of increased risk appetite in the market. The Risk-on market sentiment was caused by the reopening of the US economy from the coronavirus induced lockdowns.

Gold prices were closed at $1710.53 after placing a high of $1735.38 and a low of $1708.78. Overall the movement of gold remained bearish throughout the day. Gold prices followed its previous day’s trend and continued to fall on Tuesday and reached near the level of $1700 support on the back of increased risk appetite in the market. The Risk-on market sentiment was caused by the reopening of the US economy from the coronavirus induced lockdowns.

Gold prices were closed at $1710.53 after placing a high of $1735.38 and a low of $1708.78. Overall the movement of gold remained bearish throughout the day. Gold prices followed its previous day’s trend and continued to fall on Tuesday and reached near the level of $1700 support on the back of increased risk appetite in the market. The Risk-on market sentiment was caused by the reopening of the US economy from the coronavirus induced lockdowns.

From the American side, the US dollar remained under pressure against the Euro as the consumer confidence from the Conference board dropped to 86.6 against the expected 87.1 and weighed on the US dollar. The broad-based US dollar weakness pushed the already increasing XAU/USD prices lower on Wednesday.


The XAU/USD broke out of the descending triangle pattern, providing support at 1,718, and now it’s trading bearish at 1,706. The recent bearish trend in gold came in response to a downward channel supporting bearish bias among traders.

Entry Price – Sell 1708.81    

Stop Loss – 1715.81    

Take Profit – 1698.81    

Risk to Reward – 1.43

Profit & Loss Per Standard Lot = -$700/ +$1000

Profit & Loss Per Micro Lot = -$70/ +$100

Categories
Forex Signals

Gold Choppy Sessions Continues – Wait for Breakout! 

The safe-haven-metal prices regain its bullish traction and rose from a one-week low of $1,717.34 to $1,734.05, mainly due to the risk-off market sentiment in the wake of US-China intensified tussle and coronavirus (COVID-19) second wave fears. On the other hand, the U.S. dollar also draws safe-haven bids and managed to limit any additional gains in the gold prices. At this moment, the safe-haven-metal prices are currently trading at 1,734.97 and consolidating in the range between 1,724.50 and 1,735.55.

The safe-haven-metal prices regain its bullish traction and rose from a one-week low of $1,717.34 to $1,734.05, mainly due to the risk-off market sentiment in the wake of US-China intensified tussle and coronavirus (COVID-19) second wave fears. On the other hand, the U.S. dollar also draws safe-haven bids and managed to limit any additional gains in the gold prices. At this moment, the safe-haven-metal prices are currently trading at 1,734.97 and consolidating in the range between 1,724.50 and 1,735.55.

The safe-haven-metal prices regain its bullish traction and rose from a one-week low of $1,717.34 to $1,734.05, mainly due to the risk-off market sentiment in the wake of US-China intensified tussle and coronavirus (COVID-19) second wave fears. On the other hand, the U.S. dollar also draws safe-haven bids and managed to limit any additional gains in the gold prices. At this moment, the safe-haven-metal prices are currently trading at 1,734.97 and consolidating in the range between 1,724.50 and 1,735.55.

The reasons behind the gold pullback could be attributed to the tussle between the world’s top two economies, which was further bolstered by China’s indirect warning to the U.S., from the 13th National People’s Congress. As a Chinese speaker for the National People’s Congress, Zhang Yesui, said that China would strongly take its stand against the U.S. accuses and firmly defend its interest if the U.S. takes any action to ease the dragon nation’s core interests. 

Apart from this, China’s ruling Communist Party has set a controversial national security law in motion for Hong Kong separation. This law would be able to ban foreign interference, terrorism, and external interference aimed at collapsing the central government, which eventually fueled concerns about a major US-China tussle and sent the gold prices higher.

On the other hand, fresh upticks in the yellow metal are also driven by the report that showed the Asian major dropped its economic growth target, 6-6.5% for GDP in 2019. This eventually increased the market uncertainty because the world’s 2nd biggest economy faced much disappointment from the GDP, which pushed investors into the safe-haven metal.

At the coronavirus front, the second wave of coronavirus kept the market risk sentiment under pressure and urged the global policymakers to rethink their reopening of the economies. However, U.S. President Donald Trump recently clearly said he would not shut down the economy during the second round of the virus.

The U.S. dollar continued to draw the haven demand on the back of the US-China tussle. As in result, investors turned to the safe-haven dollar, which kept the global stocks under pressure. Whereas, The U.S. Dollar Index that tracks the greenback against a basket of other currencies was up 0.19% to 199.593 by 11:44 PM ET (4:44 AM GMT). However, the U.S. dollar bullish bias turned out to be one of the major factors that kept a cover on any further gains in the gold prices.

As a result, the U.S. 10-year Treasury yields continued to report losses near 0.70%, while Japan’s NIKKEI struggled for direction around 20,560 by the press.

Looking ahead, the U.S. dollar price action and risk tone will continue to influence the gold trades. However, the near-term sentiment around the yellow-metal may remain strengthened by the huge stimulus announcing globally to control the virus’s impact.


Daily Support and Resistance

S1 1676.16

S2 1702.89

S3 1715.19

Pivot Point 1729.63

R1 1741.93

R2 1756.36

R3 1783.1

Gold slipped sharply from 1,740 level to 1,717 support level, which was extended by the upward trendline on the 4-hour timeframe. Bullish trend continuation may drive buying until 1,745 level and even higher towards 1,754 level while bearish breakout of 1,717 can open further room for buying until 1,708 level. Odds of bullish bias remains strong today. Good luck! 

Categories
Forex Signals

Gold Trades Within Sideways Range – Buckle Up for A Breakout Setup! 

The safe-haven-metal prices flashed green and erased its previous session losses mainly due to intensifying trade war tensions between the US-China. However, the yellow metal hit its highest level since December of 2012 at $1,765 on Monday, but after that, the gold prices dropped sharply during the American trading session. The reason for the sharp decline could be attributed to the positive news about the COVID-19 vaccine. 

The safe-haven-metal prices flashed green and erased its previous session losses mainly due to intensifying trade war tensions between the US-China. However, the yellow metal hit its highest level since December of 2012 at $1,765 on Monday, but after that, the gold prices dropped sharply during the American trading session. The reason for the sharp decline could be attributed to the positive news about the COVID-19 vaccine. 

The safe-haven-metal prices flashed green and erased its previous session losses mainly due to intensifying trade war tensions between the US-China. However, the yellow metal hit its highest level since December of 2012 at $1,765 on Monday, but after that, the gold prices dropped sharply during the American trading session. The reason for the sharp decline could be attributed to the positive news about the COVID-19 vaccine. 

At this moment, the yellow-metal prices are currently trading at 1,733.71 and are consolidating in the range between 1,732.05 –and 1,740.38, while representing 0.18% gains and having hit the high of $1,735.84. Moreover, the broad-based US dollar modest weakness kept a lid on any additional losses in the gold and contributed to the pair’s bullish moves.

Gold futures were higher by 0.27% at $1,739.35 by 12:43 AM ET (5:43 AM GMT). Stocks, which normally have an inverse relationship with gold, were also up on Tuesday. Despite the optimism surrounding the market about Moderna (NASDAQ: MRNA) reports of positive results on Monday from its phase one experiment for its COVID-19 vaccine, the investors preferring into safe-haven yellow metal manly because the US-China trade tussle was getting worse day by day. 

Trump warned about stopping US funds to WHO if the United Nations body will not be able to show bigger improvements and independence from China in the next 30 days. The reason behind the high preference of gold in the market could be the report that the NASDAQ stock exchange set to implement new restrictions on Chinese IPOs.


Daily Support and Resistance

S1 1666.87

S2 1704.45

S3 1718.73

Pivot Point 1742.02

R1 1756.3

R2 1779.6

R3 1817.17

On the technical side, the yellow metal gold is trading sideways below 1,739 resistance and above the support level of 1,726 level. In between this range, the market is likely to offer choppy trading sessions, until the trading range gets violated. We may see an extension of a bullish trend upon the bullish breakout of 1,739, which may open further room for buying until the next target level of 1,750 and 1,759. Below 1,726 old prices can drop until 1,716 level. Let’s wait for a breakout, and then we will open a position accordingly. Good luck! 

Categories
Forex Market Analysis

Gold Holds Below Top Triple Pattern – Can Retail Sales Drive Breakout?

The safe-haven-metal prices extend its 3-winning streak and take bids near 3-weeks high around $1,733 while representing 0.12% increase on the day as US-China tension keeps traders in a cautious mode. As well as, investors turned into the safe-haven-metal after mixed Chinese industrial production and retail sales data, as well as Thursday’s U.S. jobless claims data. 

The safe-haven-metal prices extend its 3-winning streak and take bids near 3-weeks high around $1,733 while representing 0.12% increase on the day as US-China tension keeps traders in a cautious mode. As well as, investors turned into the safe-haven-metal after mixed Chinese industrial production and retail sales data, as well as Thursday’s U.S. jobless claims data. 

The safe-haven-metal prices extend its 3-winning streak and take bids near 3-weeks high around $1,733 while representing 0.12% increase on the day as US-China tension keeps traders in a cautious mode. As well as, investors turned into the safe-haven-metal after mixed Chinese industrial production and retail sales data, as well as Thursday’s U.S. jobless claims data. 

Earlier in the morning, the yellow-metal erases some gains in the wake of Increasing odds of no negative rates. While the possibility of another stimulus recently favored the market risk-tone before the China data. At this moment, the yellow-metal prices are currently trading at 1,735.55 and consolidate in the range between the 1,728.84 – 1,738.61.

China showed a confusing picture of its recovery from the COVID-19 virus as it’s said that industrial production in April rose 3.9% year-on-year, higher than the 1.5% predicted by analyst forecasts. Whereas, it also said that retail sales in the same month slipped 7.5% year-on-year, against analyst estimates of a 7% drop. The U.S. showed that 2.981 American citizens lost their jobs during the past week, Anyhow, the number of unemployment has been declining gradually over six weeks, but 36 million claims have been filed so far since late March.

On the other hand, the market risk sentiment got some support during the earlier morning from the increasing odds of another stimulus from the U.S., as well as, the reason for the risk-on market sentiment could also be attributed to the statement from the Fed policymakers about ruled out negative Fed rates.

Apart from these, the yellow-metal bullish moves also bolstered by the bill, which is recently passed by U.S. Senate about enabling the administration to fresh levy sanctions on Chinese officials involved in the Xinjiang case.


Support Resistance
1722.44 1752.94
1703.97 1764.97
1691.94 1783.44
Pivot Point 1734.47

Gold prices continue to hold below the triple top resistance level of 1,740. Bullish crossover of this level may drive more buying in gold, leading to its prices towards the next resistance level of 1,748. The support continues to hold around 1,728 and 1,722 level today, while the MACD is showing neutral sentiments ahead of the release of U.S. retail sales data. Besides this, the 50 EMA is also supporting the gold’s bullish bias today. Let’s keep an eye on 1,740 as selling can be seen below this, and buying above the same level today. Good luck! 

Categories
Forex Market Analysis

Safe Haven Gold on Fire – Triangle Pattern Breakout! 

During the early U.S. session, the safe-haven-metal prices extend its 3-day winning streak and rise to a 4-day high level of $1,718.35 while taking rounds to $1,716.50, mainly due to the depressing speech U.S. Federal Reserve Chair Jerome Powell about the economic downturn. Despite the Federal Reserve policymakers’ refusal for the negative rate, the yellow-metal continued to take bids as the U.S. President Donald Trump renewed calls for the negative Fed rates. 

During the early U.S. session, the safe-haven-metal prices extend its 3-day winning streak and rise to a 4-day high level of $1,718.35 while taking rounds to $1,716.50, mainly due to the depressing speech U.S. Federal Reserve Chair Jerome Powell about the economic downturn. Despite the Federal Reserve policymakers’ refusal for the negative rate, the yellow-metal continued to take bids as the U.S. President Donald Trump renewed calls for the negative Fed rates. 

During the early U.S. session, the safe-haven-metal prices extend its 3-day winning streak and rise to a 4-day high level of $1,718.35 while taking rounds to $1,716.50, mainly due to the depressing speech U.S. Federal Reserve Chair Jerome Powell about the economic downturn. Despite the Federal Reserve policymakers’ refusal for the negative rate, the yellow-metal continued to take bids as the U.S. President Donald Trump renewed calls for the negative Fed rates. 

The US-China intensifying tension and the risk of coronavirus second wave also weighed on the risk sentiment, which eventually supported the safe-haven assets like gold. At this moment, the safe-haven-metal prices are currently trading at 1,716.21 and are consolidating in the range between 1,711.21 and 1,719.80.

The Federal Reserve Chair Powell said that negative interest rates were not needed yet. In the meantime, the Cleveland Federal Reserve President Loretta Mester said, we cannot consider “negative rates” as an excellent tool for supporting the economy. If talking about Powell’s speech, the Federal Reserve’s chairman warned about the scope and speed of the continuing economic downturn while comparing the recession pace with the World War II recession. 

The reason behind the risk-off market sentiment is the US-China tussle. It would be worth mentioning that the recent aggressive words from China came after U.S. President Trump directed the board of Federal retirement savings fund to stop investing in the Chinese stocks.


Recently, the XAU/USD broke out of the symmetric triangle pattern, which was providing resistance at 1,718, and now it’s trading bullish at 1,735. The recent bullish trend in gold came in response to worse than expected Jobless claims data from the U.S. As per the U.S. labor department, the advance figure initial claims were 2,981,000, a drop of 195,000 from the prior week’s updated level is reported. A weaker dollar has triggered the bullish trend in gold, and now it’s likely to lead gold prices towards 1,740. Now, we may see bearish correction below 1,740, while further buying trades can be taken above 1,720. All the best! 

Categories
Forex Signals

Gold bounces off the Linear Regression line and heads up to meet the top of the channel

The idea

The idea

The idea

Gold has been having a corrective movement lately. The price has created a slightly descending channel. If we draw a linear regression channel we can easily see the consensus of price, represented by the mean line, which is the average line of the price set for the range, and the edges of the channels are set at ±2 Sigmas (standard deviation) of the centerline.

On the 2H chart we see that, after the price did a higher low below the centerline, it went up, and consolidated for a while above that line. Today it made an engulfing figure that broke through the recent range and is heading up.

A long position was entered at 1,711.12 with a stop-loss at $1,699.12 and a take profit of 1,725.12, which gives a reward to risk ratio of 1.17, which is less than the usual, but also the target can be reached easier, as it is not set at the top of the channel but at the recent high of the price, made on May 08.

Main levels:

  • Long entry: 1,711.12
  • Stop-Loss: 1,699.12
  • Take-profit: 1,725.12

Reward/Risk Ratio: 1.17

Dollar Reward and Risk

  • Risk:$1200 per lot, $120 per mini lot, 12 per micro lot
  • Reward: 1400 per lot, $140 per mini lot, $12 per micro lot.

 

 

Categories
Forex Signals

Gold Breaking Below 50 EMA and Support – Brace for Selling!

The safe-haven-metal prices flashing green and take bids around the $1,710 while representing 0.50% gains on the day mainly due to fresh allegations on China by the United States helping to increase the safe-have demand in the market. The Sino-US relationship was eased after both parties agreed to improve the atmosphere for fulfilling the phase-one deal’s promises. This came after President Donald Trump threatened new tariffs on Chinese goods in case of not buying $200 worth U.S. farm products by China.

The safe-haven-metal prices flashing green and take bids around the $1,710 while representing 0.50% gains on the day mainly due to fresh allegations on China by the United States helping to increase the safe-have demand in the market. The Sino-US relationship was eased after both parties agreed to improve the atmosphere for fulfilling the phase-one deal’s promises. This came after President Donald Trump threatened new tariffs on Chinese goods in case of not buying $200 worth U.S. farm products by China.

The safe-haven-metal prices flashing green and take bids around the $1,710 while representing 0.50% gains on the day mainly due to fresh allegations on China by the United States helping to increase the safe-have demand in the market. The Sino-US relationship was eased after both parties agreed to improve the atmosphere for fulfilling the phase-one deal’s promises. This came after President Donald Trump threatened new tariffs on Chinese goods in case of not buying $200 worth U.S. farm products by China.

The Consumer Credit for the month of March was released from the Federal Reserve of the U.S., which showed a decline by -12.0B against the expectations of positive 14.9B. This weighed on the U.S. dollar and limited the downfall of gold prices on Friday. 

Furthermore, the latest economic data from the United States fueled expectations that the Federal Reserve will stimulate more in the next meeting, and markets started to price in for a negative interest rate environment. On Saturday, President Donald Trump said that the United States would purchase $3B worth of dairy & farm products in order to help the struggling U.S. farmers. He stated that the government’s purchase would be a part of “Farmers to Family Food Box.” 

The demand for agricultural products was decreased due to the lockdown caused by the coronavirus pandemic, which started in March, and it has disrupted the supply chains across the nations. This has caused some U.S. farmers even to destroy their products, which they can’t store.  Donald Trump also said with no evidence that coronavirus pandemic will go away without a vaccine. He spared the specifics, said that other viruses also disappeared, and the same would happen with this COVID-19. He added that viruses die too like everything else, and he was hopeful that this virus would also go away after some time.


Daily Support and Resistance  

Support Resistance

1,699.50 1,731.90

1,685.10 1,749.90

1,667.10 1,764.30

Pivot Point: 1,717.50

 

XAU/USD – Daily Trade Sentiment

Gold is trading with a bearish bias, holding mostly below 1,710 resistance level. Gold is trying to cross below the 50 EMA support area, which can lead to gold prices further lower towards 1,694 level. Alongside, the RSI is also holding below 50, suggesting odds of selling bias in gold. 

On the upper side, gold’s resistance is expected to be found near 1,720 and 1,737, whereas the support continues to stay around 1,694 regions. In case of a downward breakout, gold prices may slip towards 1,671 level.

  • Entry Price: Sell at 1700.8    
  • Take Profit .1688.8    
  • Stop Loss 1708.3    
  • Risk/Reward 1.60

Profit & Loss Per Standard Lot = -$750/ +$1200

Profit & Loss Per Micro Lot = -$75/ +$120

Categories
Forex Elliott Wave Forex Signals

Gold Could Develop a Bearish Wave C

Description

Description

Description

Gold, in its 2-hour chart, illustrates a decreasing advance that could correspond to a corrective structure in progress, which could result in further declines.

The Elliott wave sequence suggests the possibility of an incomplete wave ((c)) that could be developing its internal wave (ii) of the Minuette degree identified in blue.

On the other hand, the yellow metal retraced until 50% of the last bullish sequence. This retrace makes us foresee that the upward cycle could be in an exhaustion stage, and Gold couldn’t realize a new higher high that surpass the April high at $1,747.74 per ounce.

Our bearish scenario foresees a decline from the current area at $1,696 per ounce, with a potential bearish target located at level $1,676. 

The scenario forecasted will be invalid if the price surpasses and closes above $1,711 per ounce.

Chart

Trading Plan Summary

  • Entry Level: $1,696.62
  • Protective Stop: $1,711.62
  • Profit Target: $1,676.62
  • Risk/Reward Ratio: 1.33
  • Position Size: 0.01 lot per $1,000 in trading account.
Categories
Forex Market Analysis

Gold Descending Triangle Pattern Weights – Quick Sell Setup! 

The safe-haven-metal prices were flashing green and were recovering gradually from the intraday low above $1,700 level, mainly due to the risk-off market sentiment in the wake of intensifying trade tussle between the United States and China. On the other hand, the positive news from Gilead about the vaccine of virus seems to have eased the coronavirus fears in the market, which turned out to be one of the key factors that kept a lid on any additional gains in the gold prices. 

The safe-haven-metal prices were flashing green and were recovering gradually from the intraday low above $1,700 level, mainly due to the risk-off market sentiment in the wake of intensifying trade tussle between the United States and China. On the other hand, the positive news from Gilead about the vaccine of virus seems to have eased the coronavirus fears in the market, which turned out to be one of the key factors that kept a lid on any additional gains in the gold prices. 

The safe-haven-metal prices were flashing green and were recovering gradually from the intraday low above $1,700 level, mainly due to the risk-off market sentiment in the wake of intensifying trade tussle between the United States and China. On the other hand, the positive news from Gilead about the vaccine of virus seems to have eased the coronavirus fears in the market, which turned out to be one of the key factors that kept a lid on any additional gains in the gold prices. 

At the press time, the yellow metal prices are currently trading at 1,702.27 and are consolidating in the range between 1,692.34 and 1,702.27. However, when gold slipped to $1,692.30 during the early-Asian session, it was possibly due to US dollar strength.

The good news from Gilead about coronavirus vaccine successful trials which seem to reduce the coronavirus (COVID-19) fears at the start of the week in the market. The company making the vaccine reported that it has been exporting the anti-viral drug to the United States and making it available to US patients with the help of the US government.


Daily Support and Resistance

    

S1 1621.49

S2 1656.9

S3 1678.78

Pivot Point 1692.32

R1 1714.19

R2 1727.73

R3 1763.15

Gold prices have closed drawing a hanging man pattern, which is keeping the precious metal gold supported 1,692 level. Closing of candles below a downward trendline may keep the gold prices bearish below 1,711 level. On the lower side, gold may find support around 1,692 and 1,681 level. Conversely, a bullish crossover of 1,717 resistance can drive buying until 1,732/36 level. Good luck! 

Categories
Forex Signals

Gold Setting for Further Declines

Description

Description

Description

Gold, in its 2-hour chart, exposes the violation of the ascending trendline that links the latest lower highs. 

The last pause structure that looks like a flag pattern suggests the possibility of bearish continuation of the previous downward movement.

On the other hand, the lower speed observed in the price action, and considering the alternation principle, we expect an aggressive sell-off, which could be supported by the strength of the US Dollar.

In the same way, the RSI oscillator rejected the last upside below level 60, which provide us an additional clue for the bearish sentiment.

We consider a bearish scenario from the current levels expecting a decline until $1,631 per ounce. 

Our bearish outlook will be invalid if the price soars and closes above $1,731 per ounce.

 Chart

Trading Plan Summary

Categories
Forex Market Analysis

Gold’s Triple Top Resistance Weighs – 23.8% Fibonacci Retracement Holds! 

During the European session, the precious metal gold was trading at 1,718 area. Technically, gold entered the overbought zone and showed a slight bearish retracement at 1,718 region, which marks 23.8% Fibonacci retracement level and can be seen on the chart below. 

During the European session, the precious metal gold was trading at 1,718 area. Technically, gold entered the overbought zone and showed a slight bearish retracement at 1,718 region, which marks 23.8% Fibonacci retracement level and can be seen on the chart below. 

During the European session, the precious metal gold was trading at 1,718 area. Technically, gold entered the overbought zone and showed a slight bearish retracement at 1,718 region, which marks 23.8% Fibonacci retracement level and can be seen on the chart below. 

As per the latest report from the Centers for Disease Control and Prevention (CDC), the number of COVID19 virus cases rose to 52,459 against the previous day’s 50,439, while the cases surged to 928,619 against 895,766. Despite this, the demand for safe-haven gold is getting hit as investors seem to do profit takings ahead of exhibiting a further bullish bias.

The positive mood around the equity market failed to impressed buyers, which normally weakens the Japanese yen’s safe-haven demand. The reason behind the risk-on market sentiment could be the hopes for the re-start the economy. The certainty about the drug trials for the treatments of the deadly disease keeps the market calm.

Gold – XAU/USD – Daily Technical Levels

Support Resistance 

1,732.65   1,748.95

1,722.9     1,755.5

1,716.35   1,765.25

Pivot Point 1739.2

On the 4 hour timeframe, the precious metal gold has formed a bearish engulfing candle, which is suggesting odds of selling trend in the market below the 1,718 area. Since the overall trend seems bullish, we will try to capture quick sell in gold as soon as gold closes below 1,718, which is 23.8%, and violation of 1,718 level can open further selling until 1,708, which marks 38.2% retracement. Let’s look for selling positions below 1,728 and buying above 1712. Good luck! 

Categories
Forex Signals

Overbought Gold Closes Bearish Engulfing – Brace to Sell! 

During the Asian session, the precious metal gold was trading at 1,713 area. Technically, gold has entered the overbought zone, and it may help show us a slight bearish retracement below 1,718 area until 23.8% Fibonacci retracement level of 1,705 before showing further bullish trends in the market. 

During the Asian session, the precious metal gold was trading at 1,713 area. Technically, gold has entered the overbought zone, and it may help show us a slight bearish retracement below 1,718 area until 23.8% Fibonacci retracement level of 1,705 before showing further bullish trends in the market. 

During the Asian session, the precious metal gold was trading at 1,713 area. Technically, gold has entered the overbought zone, and it may help show us a slight bearish retracement below 1,718 area until 23.8% Fibonacci retracement level of 1,705 before showing further bullish trends in the market. 

Overall, the fundamental side of the market is suggesting a bullish bias for gold as it’s price soared as much as 1.9% a day before. Most of the bullish bias was seen in the wake of sentiments of additional fiscal and monetary stimulus measures amid massive economic collapse due to stay-at-home and business abandonment orders around the world to restrict the spread of the novel coronavirus.


On the 4 hour timeframe, the precious metal gold has formed a bearish engulfing candle, which is suggesting odds of selling trend in the market below the 1,718 area. Since the overall trend seems bullish, we will try to capture quick sell in gold. Let’s open a sell trade at 1712.52 with a stop loss around 1720.02 and take a profit at 1705.02.

Entry Price: Sell at 1712.52

Take Profit 1705.02    

Stop Loss 1720.02 

Risk/Reward 1.00

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

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

Categories
Forex Market Analysis

Risk-off Sentiment Triggers Buying in Gold – Channel Breakout

During Wednesday’s European session, the safe-haven metal prices climbed over $1,710 mark mainly because the stocks are reporting losses due to the sharp decline in the oil prices. The intensifying coronavirus fears also keep the gold prices higher as high safe-haven demand in the market. 

During Wednesday’s European session, the safe-haven metal prices climbed over $1,710 mark mainly because the stocks are reporting losses due to the sharp decline in the oil prices. The intensifying coronavirus fears also keep the gold prices higher as high safe-haven demand in the market. 

During Wednesday’s European session, the safe-haven metal prices climbed over $1,710 mark mainly because the stocks are reporting losses due to the sharp decline in the oil prices. The intensifying coronavirus fears also keep the gold prices higher as high safe-haven demand in the market. 

The gold is currently trading at 1,710, and it has violated the previously traded consolidation range between the 1,696.20 – 1,713.50. One of the major reasons behind such a dramatic bullish trend is lashing red for a second day due to oil futures dropping in the previous session. The yellow metal is witnessing its prices restore its inverse relationship with stocks because investors prefer safe-haven assets in the wake of coronavirus fears.

At the oil front, crude oil, which started this year near $61, dropped into the negative territory earlier this week due to the oversupply concerns in the wake of coronavirus pandemic, which has caused demand destruction of oil. The risk sentiment is getting worse day by day while the US 10-year Treasury yields declined by 2-basis points (bps) to 0.55%, after dropping 4-bps on Tuesday, while the most stocks in Asia-Pacific flashing losses by the pres time.


Gold – XAU/USD – Daily Technical Levels

Support Resistance 

1,672.4     1,703.07

1,660.04   1,721.39

1,629.37   1,752.07

Pivot Point 1,690.72

Technically, gold is showing sharp bullish movement as its prices are going towards 1,726, while the support stays around 1,700 and 1,710 level. Gold is also forming three white soldiers pattern on the 4-hour chart, which is suggesting chances of a bullish trend continuation in the market. The 50 EMA is suggesting bullish trend continuation, so we should probably look for buying trades above 1,710 level to target 1,726 level. Good luck.  

Categories
Forex Market Analysis

Gold Bullish Correction – Is It Good Time to Go Long?

On Monday, the precious metal gold edged higher from a more than one-week low hit earlier, helped by dwindling share markets as U.S. crude prices plunged and concerns about coronavirus-linked economic damage persisted.

On Monday, the precious metal gold edged higher from a more than one-week low hit earlier, helped by dwindling share markets as U.S. crude prices plunged and concerns about coronavirus-linked economic damage persisted.

On Monday, the precious metal gold edged higher from a more than one-week low hit earlier, helped by dwindling share markets as U.S. crude prices plunged and concerns about coronavirus-linked economic damage persisted.

The reason behind the fresh risk-off market sentiment is the rise in the coronavirus (COVID-19) driven death numbers from the U.S. and the U.K. The U.S. President Donald Trump’s indirect attack on China’s struggles to stop the coronavirus outbreak also pushes the risk-off.

On the flip side, U.S. President Donald Trump showed some willingness to deliver another relief plan while also pushing for an economic re-open program but failed to extend the Friday’s risk-on market sentiment. The yellow-metal got mild support earlier by the People’s Bank of China’s (PBOC) rate cut.

The U.S. 10-year Treasury yields drop more than 2-basis points (bps) to 0.634%, whereas Asian stocks also struggle. Looking forward, the traders will keep their eyes on the virus-related headlines for taking fresh directions.

Daily Support and Resistance

  • S1 1629.37
  • S2 1660.04
  • S3 1672.4
    Pivot Point 1690.72
  • R1 1703.07
  • R2 1721.39
  • R3 1752.07

Technically, gold is bouncing off above a strong support area of 1,672 to trade around 1,695 level. Closing of candles below 1,701 levels may drive some bearish correction in the market while the major resistance stays around 1,712. Below this, we may see some selling bias in gold today. The 50 EMA is suggesting buying while the MACD is suggesting selling trend, but histograms are becoming smaller suggestings chances of a bullish reversal. Let’s look for buying trades over 1,686 and selling trades below 1,712 today. Good lucK!

Categories
Forex Signals

Gold Could Decline in its Firth Wave

 

 

Description

Gold, in its 2-hour chart, shows an intraday recovery after the bearish sequence started on April 14th when the price found sellers at $1,747.47 per ounce.

Once the price soared above the upper line of the ascending channel and sellers pulled-down the precious metal, Gold began to develop a downward movement. This sequence looks like the third wave of Subminuette degree identified in green.

If our intraday analysis is correct, the recovery observed on Monday’s session should reach the zone between 38.2% and 50% of the third wave.

On the other hand, the RSI oscillator bounced and didn’t surpass the level 60, which make us foresee further declines.

The sell-side position will activate at the psychological level at $1,700 per ounce. As a conservative scenario, we expect a re-test of the previous low at $1,670, which would correspond to the fifth wave of Subminuette degree in green.

Finally, our bearish setup will be invalid if the price soars and closes above $1,725 per ounce.

Chart

Trading Plan Summary

Categories
Forex Market Analysis

Gold Breakout Upward Channel – Can 50 EMA Support?

On Friday, the gold prices fell sharply from 1,724 level to 1,682 level as the demand for safe have assets faded after headlines from STAT news that Gilead Sciences experimental drug witnessed the fast recoveries in fever and respiratory symptoms which are linked with the coronavirus. 

On Friday, the gold prices fell sharply from 1,724 level to 1,682 level as the demand for safe have assets faded after headlines from STAT news that Gilead Sciences experimental drug witnessed the fast recoveries in fever and respiratory symptoms which are linked with the coronavirus. 

On Friday, the gold prices fell sharply from 1,724 level to 1,682 level as the demand for safe have assets faded after headlines from STAT news that Gilead Sciences experimental drug witnessed the fast recoveries in fever and respiratory symptoms which are linked with the coronavirus. 

Finally, there is something positive from COVID 19 viewpoint, and it helped reduce the chaos in the market, driving risk-on sentiment. As in result, the market’s risk-tone remains upbeat and supports the U.S. 10-year treasury yields to improve further and to erase the previous day’s losses, currently near 0.67%.

Whereas, the U.S. dollar continues to lose its buying momentum across the board, as the U.S. stocks futures and the Asian equities are reporting green mainly after the renewed hopes for coronavirus treatment. Thus, this extends bearish pressure for precious metal gold. 

On the other hand, the economic event from China, the world’s second-largest economy, had shown a decline in GDP. Chinese economy contracted 6.8% in the quarter year-on-year, slightly more than expected, and 9.8% from the previous quarter, driving selling bias for the gold.


Technically, gold has violated the upward channel, and now it’s trading above 1,685 area. At the same price, the 50 periods EMA is proving it support, and gold has also closed a Doji candle followed by a hammer pattern, which can be seen on the 4-hour chart above. This setup demonstrates that investors are respecting 1,685 support areas, and gold prices may bounce off above this level until the resistance level of 1,700 and 1,709. In contrast, a bearish breakout of 1,685 level can cause further sell-off until 1,668. Good luck! 

Categories
Forex Signals

Gold Bullish Bias Continues to Dominate – Brace for a Buying Trade! 

Gold is on a bullish run as it’s the pricing has soared to 1,730 level in the wake of increased safe-haven appeal in the market. The U.S. government bond prices increased, pressing the benchmark 10-year U.S. Treasury yield down to 0.637% from 0.751% Tuesday.

Gold is on a bullish run as it’s the pricing has soared to 1,730 level in the wake of increased safe-haven appeal in the market. The U.S. government bond prices increased, pressing the benchmark 10-year U.S. Treasury yield down to 0.637% from 0.751% Tuesday.

Gold is on a bullish run as it’s the pricing has soared to 1,730 level in the wake of increased safe-haven appeal in the market. The U.S. government bond prices increased, pressing the benchmark 10-year U.S. Treasury yield down to 0.637% from 0.751% Tuesday.

On Thursday, the precious metal gold is trading with a strong bullish bias on the back of an increased number of COVID 19 cases around the globe. On the 4 hour chart, gold is trading within a bullish channel, which is supporting the XAU/USD prices above 1,709 level, and these are also providing resistance at 1,738 and 1,747 today.


The RSI and MACD are suggesting odds of bullish trend continuation, which is why we have entered a bullish trade around 1726 with a stop loss below 1726 and take profit of around 1739. 

Entry Price: Buy at 1726 

Take Profit 1739    

Stop Loss 1718    

Risk/Reward 1.63

Profit & Loss Per Standard Lot = -$‭800/ +$1300

Profit & Loss Per Micro Lot = -$‭80/ +$130

Categories
Forex Signals

Gold – Completed an Upward Sequence

Description

Description

Description

Gold, in its 2-hour chart, shows the completion of an upward five-wave sequence at $1,747.74 per ounce on Tuesday 14th.

The last bullish move corresponds to wave (v) of the Minuette degree labeled in blue. At the same time, we observe the thrust developed by the yellow metal as a false breakout. This movement warns us about the potential upward sequence completion.

On the other hand, we observe the bullish trendline in the fifth wave of Subminuette degree in green pierced. This bearish reaction gives us a second argument for the exhaustion of the bullish sequence.

In conclusion, we consider a sell-side position at $1,718 per ounce, with a potential bearish target at $1,673.64 per ounce. This level converges with the end of the third wave of Subminuette degree in green.

Our bearish scenario will be invalid if the yellow metal surges and closes above $1,753 per ounce.

Chart

Trading Plan Summary

Categories
Forex Signals

Bullish Bias in Gold Continues to Dominate – Who’s up for a bullish Signal?

On Tuesday, the precious metal gold continues to trade higher around 1,730 area in the wake of increased safe-haven appeal driven by COVID 19. Furthermore, the early-day upbeat remarks from the U.S. Task Force Briefings, news from the U.K. also recommend the coronavirus (COVID-19) is near to its expected high’s. The same could negatively influence the gold’s safe-haven appeal that has lately fired the bullion to the highest since November 2012.

On Tuesday, the precious metal gold continues to trade higher around 1,730 area in the wake of increased safe-haven appeal driven by COVID 19. Furthermore, the early-day upbeat remarks from the U.S. Task Force Briefings, news from the U.K. also recommend the coronavirus (COVID-19) is near to its expected high’s. The same could negatively influence the gold’s safe-haven appeal that has lately fired the bullion to the highest since November 2012.

On Tuesday, the precious metal gold continues to trade higher around 1,730 area in the wake of increased safe-haven appeal driven by COVID 19. Furthermore, the early-day upbeat remarks from the U.S. Task Force Briefings, news from the U.K. also recommend the coronavirus (COVID-19) is near to its expected high’s. The same could negatively influence the gold’s safe-haven appeal that has lately fired the bullion to the highest since November 2012.

The U.S. President Donald Trump is showing a willingness to support the USA fight against the coronavirus (COVID-19), which eventually seems to help the risk-tone. This time, the Fed will elevate about $2.3 trillion to promote small and medium-sized companies, districts and workers harmed by the coronavirus break.

Apart from this, the recent recovery in the Asian equity and continued rise in the U.S. 10-year Treasury yields, which is currently near 0.773%, provided support to the oil prices recover. The better-than-expected Chinese trade data also give confidence to the oil buyers.


Technically, the XAU/USD has the potential to go long, which is why we have opened a buying signal at 1728.27 with a stop loss of around 1718.27 and take a profit of 1738.27. The bullish channel likely keeps the gold prices higher, while the RSI and MACD are suggesting a continuation of a bullish bias in the gold. On the higher side, gold has the potential to go after 1,743 level today.

Buying Price: 1728.27
Take Profit 1738.27
Stop Loss 1718.27
Risk/Reward 1
Profit & Loss Per Standard Lot = -$1000/ +$1000
Profit & Loss Per Micro Lot = -$100/ +$100

Categories
Forex Market Analysis

Bullish Bias in Gold Fades – Is It Going to Retrace Back? 

On Friday, the yellow metal gold as showing sideways trading around 1,683 level after mounting to the highest level since March 9. Yesterday, most of the bullish bias was seen in the wake of another stimulus plan announced by the Federal Reserve. 

On Friday, the yellow metal gold as showing sideways trading around 1,683 level after mounting to the highest level since March 9. Yesterday, most of the bullish bias was seen in the wake of another stimulus plan announced by the Federal Reserve. 

On Friday, the yellow metal gold as showing sideways trading around 1,683 level after mounting to the highest level since March 9. Yesterday, most of the bullish bias was seen in the wake of another stimulus plan announced by the Federal Reserve. 

The U.S. President Donald Trump is showing willingness to support the USA fight against the coronavirus (COVID-19), which eventually seems to help the risk-tone. This time, the Fed will elevate about $2.3 trillion to promote small and medium-sized companies, districts and workers harmed by the coronavirus break.

Increased volatility driven by COVID 19 has driven gold prices higher towards the forecasted resistance level of 1,689 and has closed a candle below this level. 

The consumer price index declined 0.4% from the previous month and grew 1.5% year, which is extremely lower than 2.3% gain in February. The pair got major as energy prices sank by the most in five years, exhibiting one of the stronger-ever breakdowns in oil prices.

XAU/USD – Daily Technical Levels

Support Resistance 

1656.59 1700.91

1629.83 1718.47

1585.51 1762.79

Pivot Point 1674.15

On the four timeframes, precious metal gold has formed three white soldiers, which suggest odds of further buying in the pair. Continuation of the upward trend may lead to gold prices towards the next resistance level of 1,702. At the moment, there are odds that gold prices may show correction until 1,676 and 1,669 marks ahead for extending further buying trends today. Good luck! 

Categories
Forex Market Analysis

Gold Choppy Session Continues – Ascending Triangle Supports! 

On Wednesday, gold is keeping bullish momentum over rising coronavirus death toll hammered risk sentiment. At the same time, the trader awaits the announcement of the U.S. Federal Reserve’s policy conference minutes for hints on additional stimulus measures. Gold edged 0.1% to $1,650.40 during the U.S. session. 

On Wednesday, gold is keeping bullish momentum over rising coronavirus death toll hammered risk sentiment. At the same time, the trader awaits the announcement of the U.S. Federal Reserve’s policy conference minutes for hints on additional stimulus measures. Gold edged 0.1% to $1,650.40 during the U.S. session. 

On Wednesday, gold is keeping bullish momentum over rising coronavirus death toll hammered risk sentiment. At the same time, the trader awaits the announcement of the U.S. Federal Reserve’s policy conference minutes for hints on additional stimulus measures. Gold edged 0.1% to $1,650.40 during the U.S. session. 

One of the reasons behind gold’s bullish bias is ongoing tensions around the globe. The UK PM Boris Johnson is in ICU, which is driving uncertainty from the British markets. Moreover, Japan’s Prime Minister Abe has announced a state of emergency in Tokyo and 6-other provinces and plans to control the economic fallout of COVID-19 as well as a huge fiscal stimulus package. The package, worth ¥16.5trn, equates to 20% of GDP. 

Meantime, European leaders are discussing policy tool-kit, which has probably worth up to €540bn (3.8% of GDP). However, it will be interesting to get a broad agreement between European leaders on the debt mutualization plan since the very nation is introducing stimulus plans, which makes their currencies weaker. Consequently, traders switch to precious metal gold. 

Daily Support and Resistance

Support Resistance

1,628.08 1,687.6

1,592.25 1,711.3

1,532.73 1,770.83

Pivot Point 1,651.78

Gold prices are trading with a bullish bias around 1,649 level, having supported over previously violated ascending triangle resistance become support level of 1,636. We can see a series of neutral candles over 1,636 level, which is suggesting indecision among traders. However, the upward trendline and 50 periods EMA on the 4 hour time is demonstrating a chance of bullish trend continuation in the market. 

On the higher side, gold may find immediate resistance around 1,655, and bullish breakout of this may offer buying until 1,671. While support continues to hold around 1,636. Let’s consider taking bullish trades over 1,640 levels to target 1,662 and 1,671. Good luck!

Categories
Forex Market Analysis

Gold’s Ascending Triangle Breakout Continues to Play – COVID 19 Fears! 

On Tuesday, the precious metal gold prices slipped over 1%, reversing from a near one-month high hit earlier in the session, as symptoms of less than before coronavirus patients in major epicenters fueled equity markets, pulling away some of the gold safe-haven demand.

On Tuesday, the precious metal gold prices slipped over 1%, reversing from a near one-month high hit earlier in the session, as symptoms of less than before coronavirus patients in major epicenters fueled equity markets, pulling away some of the gold safe-haven demand.

On Tuesday, the precious metal gold prices slipped over 1%, reversing from a near one-month high hit earlier in the session, as symptoms of less than before coronavirus patients in major epicenters fueled equity markets, pulling away some of the gold safe-haven demand.

The yellow-metal prices broke its early consolidation phase and hit the 1-week high near the $1660 mark in the last hour. Whereas, the gold traders did not give any significant attention to the goodish pickup in the US bond yields as well. The gold is currently trading at 1,665.60 and consolidates in the range between the 1,638.30 – 1,669.95.

The buyers of gold ignored robust recovery in the global risk sentiment, which is supported by a reduction in the number of deaths from COVID-19 and which tends to weaken the metal’s perceived safe-haven demand. Meanwhile, the risk-on sentiment was further strengthened by a strong pickup in the US Treasury bond yields.

Daily Support and Resistance

Support     Resistance
1628.08     1687.6
1592.25     1711.3
1532.73     1770.83
Pivot Point 1651.78

A day before, the precious metal gold violated an ascending triangle, which was providing resistance at 1,636 level, and now it’s working as solid support. Closing of candles above this level is suggesting chances of more buying until the next resistance level of 1,671. While support continues to hold around 1,650 and then 1,636. The leading indicator MACD is also supporting the bullish trend in gold. 

Gold has shown some correction as it dropped today from 1,673 high to 1,650 level, but now it’s time to expect another bullish rally. Let’s consider taking bullish trades over 1,650 levels to target 1,662 and 1,671. Good luck!

Categories
Forex Market Analysis

Safe-Haven-Metal Hit Weekly High $1660 – Recovery In Risk Sentiment Plays! 

The yellow-metal prices broke its early consolidation phase and hit the 1-week high near the $1660 mark in the last hour. Whereas, the gold traders did not give any significant attention to the goodish pickup in the US bond yields as well. The gold is currently trading at 1,665.60 and consolidates in the range between the 1,638.30 – 1,669.95.

The yellow-metal prices broke its early consolidation phase and hit the 1-week high near the $1660 mark in the last hour. Whereas, the gold traders did not give any significant attention to the goodish pickup in the US bond yields as well. The gold is currently trading at 1,665.60 and consolidates in the range between the 1,638.30 – 1,669.95.

The yellow-metal prices broke its early consolidation phase and hit the 1-week high near the $1660 mark in the last hour. Whereas, the gold traders did not give any significant attention to the goodish pickup in the US bond yields as well. The gold is currently trading at 1,665.60 and consolidates in the range between the 1,638.30 – 1,669.95.

The buyers of gold ignored robust recovery in the global risk sentiment, which is supported by a reduction in the number of deaths from COVID-19 and which tends to weaken the metal’s perceived safe-haven demand. Meanwhile, the risk-on sentiment was further strengthened by a strong pickup in the US Treasury bond yields.

On the other hand, the headline recently gave support to the gold prices that the 3-Swiss refineries in Ticino, Europe’s biggest gold refiner, announced yesterday that they got permission to open their factories on the limited basis. Whereas, this statement will ease the supply concerns which are caused by the coronavirus lockdowns and transport stops.

At the coronavirus front, COVID-19 weekend news is flashing recession fears and updates to the debacle, COVID-19, which has risen 1,253,919 global cases, 68,169 deaths, and 257,221 recoveries. 


Daily Support and Resistance

  • S1 1576.16
  • S2 1596.66
  • S3 1607.74

Pivot Point 1617.15

  • R1 1628.24
  • R2 1637.65
  • R3 1658.14

On the technical front, the precious metal gold has violated the ascending triangle which was providing resistance at 1,636 level. Closing of candles above this level is suggesting chances of more buying until the next resistance level of 1,671. While support continues to hold around 1,635. The leading indicator MACD is also supporting the bullish trend in gold. 

Gold seems to close three consecutive bullish candles on the 4-hour timeframe, which will become three white soldiers and will drive more buying until 1,671 level. Consider taking bullish trades over 1,636 levels to target 1,656 and 1,671. Good luck! 

 

Categories
Forex Signals

Gold – Watch this Bearish Elliott Wave Setup

Description

Description

Description

The yellow metal runs in the fifth wave of Minuette degree labeled in blue, which belongs to a wave ((c)) of Minute degree identified in black.

The Elliott wave structure suggests that the precious metal could end its upward sequence soon. The thrust of the upper line of the ascending channel observed in the fifth wave should confirm the ending movement.

We foresee an upward movement until $1,648 level, from where the price could start a corrective move to $1,601.58 per ounce as a profit target level. The bearish scenario will be invalid if the price soars above $1,673.62 per ounce.

Chart

Trading Plan Summary

  • Entry Level: $1,648.23
  • Protective Stop: $1,673.62
  • Profit Target: $1,601.58
  • Risk/Reward Ratio: 1.8
  • Position Size: 0.01 lot per $1,000 in account.
Categories
Forex Market Analysis

Gold’s Bullish Bias Remains Dominant – Is It Going After 1,633? 

On Thursday, the precious metal gold prices soared over 1% to trade around 1,608 in the wake of record-high U.S. jobless claims. The U.S. unemployment claims rose for a second week in a series over intensified concerns of economic damage because of coronavirus, which eventually drove traders towards the safe-haven metal.

On Thursday, the precious metal gold prices soared over 1% to trade around 1,608 in the wake of record-high U.S. jobless claims. The U.S. unemployment claims rose for a second week in a series over intensified concerns of economic damage because of coronavirus, which eventually drove traders towards the safe-haven metal.

On Thursday, the precious metal gold prices soared over 1% to trade around 1,608 in the wake of record-high U.S. jobless claims. The U.S. unemployment claims rose for a second week in a series over intensified concerns of economic damage because of coronavirus, which eventually drove traders towards the safe-haven metal.

The quantity of Americans registering jobless claims multiplied from the previous week to a record high of 6.65 million, as more areas of the U.S. enforced stay-at-home steps to curb the coronavirus. 

Global sentiment is getting worse time by time, despite the central banks’ and governments’ on-going struggles to fight against COVID-19. As a result, investors seem to move toward the gold as fears of a global recession stay in play, especially if noises start showing in the largest economy in the world. 

XAU/USD – Daily Technical Levels

Support       Resistance 

1,574.53      1,604.78

1,557.62     1,618.13

1,527.36     1,648.38

Pivot Point 1,587.87

On the technical front, gold is trading at 1,610, and it’s maintaining a broad trading range of 1,635 – 1,577. On the 4 hour chart, gold has closed a bullish engulfing candle, which is suggesting chances of buying trend in gold. The XAU/USD may find an immediate resistance at 1,622 and 1,634, while support stays around 1,600 and 1,595 level. The MACD and RSI are crossing over on the bullish side, and these are also supporting a buying trend in gold. Consider taking buying trades over 1,610 with a target of 1,622 and 1,627. Good luck! 

Categories
Forex Market Analysis

Gold’s Choppy Session Continues -Quick Trade Setup! 

On Wednesday, the precious metal gold prices firmed as investors sought safe-haven securities following the U.S. economic figures which heightened concerns of an economic slowdown amid growing global constraints and lockdowns to fight the coronavirus pandemic.

On Wednesday, the precious metal gold prices firmed as investors sought safe-haven securities following the U.S. economic figures which heightened concerns of an economic slowdown amid growing global constraints and lockdowns to fight the coronavirus pandemic.

On Wednesday, the precious metal gold prices firmed as investors sought safe-haven securities following the U.S. economic figures, which heightened concerns of an economic slowdown amid growing global constraints and lockdowns to fight the coronavirus pandemic.

Gold prices fell nearly 0.9% at $1,585.08 an ounce during the U.S. session as the release of Advance Nonfarm payroll seems to have a muted impact on gold prices. The United States Federal Reserve has proved a temporary repo facility for foreign central banks and other international monetary authorities. 

Hence, this should continue to decrease the bullish pressure on the greenback and possibly move the ball into sellers court. Selling in the U.S. dollar can support gold, but right now, we aren’t seeing any significant movement in the market. 

The G20 finance ministers and central bankers meet bankers’ to come up with any meaningful results apart from committing to previous commitments given to respond to COVID-19. In addition to the current meeting, the next meeting is due on 15 April, which keeps the uncertainty high in the financial and commodities markets. 

Lastly, intensifying fears about an expected global recession further benefitted the USD’s safe-haven status, which helps improve dollar prices, while driving selling pressure on gold.


On the technical front, the precious metal is trading at 1,585 level, having immediate support at 1,577 and resistance at 1,600 level for now. Bullion has completed 50% Fibonacci retracement until 1,577 level, and violation of this level can open up further room for selling until the next support level of 1,548, which marks the 61.8% Fibo level. 

XAU/USD – Daily Technical Levels

Support     Resistance 

1,560.95     1,606.8

1,544.43     1,636.13

1,498.57     1,681.99

Pivot Point 1,590.28

 

On the higher side, a bullish breakout of 1,600 level can extend buying until 1,620 and 1,635 level. Consider staying bearish below 1,600 level today. Good luck!