GOLD weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT: US FEDERAL RESERVE TO MEET NEXT ON JUNE 16, 2021: FEDERAL RESERVE KEEPS SAYING HIGHER INFLATION IS TEMPORARY, SIGNALLING NO INTERVANTION ANY TIME SOON. The Fed has kept its interest rates unchanged close to 0.00%. They continued to purchase 120 billion dollars of bonds per month in 2021 (equivalent to 1.44 trillion dollars per year). Since the beginning of the Pandemic, the Fed has purchased $2.5 trillion worth bonds.
- GOLD AND SILVER RISE ON HIGHER INFLATION IN THE USA: US INFLATION (CPI) FOR APRIL AT THE HIGHEST SINCE 2008 (4.2% VS. 3.6% expected). Inflation has continued to rise, moved up by big stimulus packages provided by the US Federal Reserve and the US Congress. A rising inflation usually increases demand for gold and silver as those assets are traditionally considered a store of value, which tends to protect the purchasing power of people’s wealth amid higher inflation.
- RUSSIA’S NATIONAL WEALTH FUND ($185.9 BILLION) TO HOLD GOLD WORTH AROUND $37 BILLION WITHIN THE NEXT MONTH. GOLD WILL ACCOUNT FOR 20% OF THE FUND. SO WHEN THE VALUE OF THIS FUND RISIS, GOLD PURCHASES WILL RISE TOO. Russia’s National Wealth Fund (NWF), which accumulates Russia’s oil revenue and was initially designed to support the pension system, stood at $185.9 billion as of May 1. The changes are expected within a month, according to Russia’s Finance Minister.
- CHINA (THE WORLD’S BIGGEST CONSUMER) INCREASES GOLD BUYING (APRIL AND MAY): China has allowed international and domestic banks to import greater amounts of gold, Reuters reports. In recent weeks China 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.
- JP Morgan SEES MONEY FLOWING FROM THE CRYPTO BACK INTO THE GOLD MARKETS: The bank said that big institutional players are leaving bitcoin for gold as bitcoin futures markets saw their steepest liquidation since October 2020.
- ANALYSTS OPINION (GOLDMAN SACHS/BANK OF AMERICA/CITIGROUP/WELLS FARGO/COMMERZBANK/ CREDIT SUISSE): 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. COMMERZBANK expected gold prices to return to $2000 by the end of the year. CREDIT SUISSE targets the area OF $1959- $1966, which rally could potentially extend to $2075.
GOLD, June 4, 2021
Current Price: 1859
|
GOLD |
Weekly |
|
Trend direction |
|
|
1980 |
|
|
1950 |
|
|
1910 |
|
|
1810 |
|
|
1790 |
|
|
1760 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
GOLD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
12,100.00 |
9,100.00 |
5,100.00 |
-4,900.00 |
-6,900.00 |
-9,900.00 |
|
Profit or loss in €** |
9,987.62 |
7,511.35 |
4,209.66 |
-4,044.57 |
-5,695.42 |
-8,171.69 |
|
Profit or loss in £** |
8,571.47 |
6,446.31 |
3,612.77 |
-3,471.09 |
-4,887.86 |
-7,013.02 |
|
Profit or loss in C$** |
14,670.89 |
11,033.48 |
6,183.60 |
-5,941.10 |
-8,366.04 |
-12,003.45 |
* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 9:00 a.m. (GMT+1) 04/06/2021
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