GOLD weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT: Federal Reserve Monetary Policy Meeting (Wednesday, April 28 at 19:00 GMT+1). Fed Chair Jerome Powel will speak at 19:30 GMT. The Fed policymakers are expected to confirm that the Fed will keep interest rates unchanged close to 0.00% until the end of 2023. They are also expected to confirm that they will continue to purchase 120 billion dollars of bonds per month in 2021 (equivalent to 1.44 trillion dollars per year). Given current evidence of rising inflation in the US, the addition monetary stimulus could affect negatively the US dollar, while Silver and Gold prices could continue to rise.
- US FISCAL STIMULUS: US President Joseph Biden signed the $1.9 trillion stimulus into law on March 11. In December 2020, the U.S. Congress approved an $892 billion coronavirus aid package. Infrastructure bill that could be worth around 2 trillion dollars has been also discussed.
- MORE THAN 3 TRILLION DOLLARS TO BE INJECTED INTO THE U.S. ECONOMY IN 2021, INFLATION TO RISE: Increased money supply in the U.S. is expected to increase upward pressure on inflation, which could grow later this year. Therefore, the US Dollar’s purchasing power could fall, while investors could be expected to seek protection with the safe-haven Gold. To this end, the markets could still expect the Gold prices to recover.
- CHINA TO INCREASE GOLD BUYING (APRIL AND MAY): China has allowed international and domestic banks to import greater amounts of gold, Reuters reports. The People’s Bank of China usually allows enough metal in to satisfy local demand, but sometimes restricts the flow. In recent weeks, however, it has allowed large amounts of bullion to enter. Around 150 tonnes of gold worth $8.5 billion has been reported to head to China in April and May.
- ANALYSTS OPINION (GOLDMAN SACHS/BANK OF AMERICA/CITIGROUP): GOLDMAN SACHS has a target price of $2000. BANK OF AMERICA 2021 estimate averages at $2063. CITIGROUP price target stands at 1950. Wells Fargo sees Gold at $2100- $2200 in 2021.
GOLD, April 16, 2021
Current Price: 1770
GOLD |
Weekly |
Trend direction |
|
1950 |
|
1900 |
|
1830 |
|
1715 |
|
1670 |
|
1600 |
Example of calculation base on weekly trend direction for 1.00 Lot*
GOLD |
||||||
Pivot Points |
||||||
Profit or loss in $ |
18,000.00 |
13,000.00 |
6,000.00 |
-5,500.00 |
-10,000.00 |
-17,000.00 |
Profit or loss in €** |
15,033.45 |
10,857.49 |
5,011.15 |
-4,593.55 |
-8,351.92 |
-14,198.26 |
Profit or loss in £** |
13,061.84 |
9,433.55 |
4,353.95 |
-3,991.12 |
-7,256.58 |
-12,336.18 |
Profit or loss in C$** |
22,524.12 |
16,267.42 |
7,508.04 |
-6,882.37 |
-12,513.40 |
-21,272.78 |
* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 13:11 (GMT+1) 16/04/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details