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GOLD

Market Opportunities - 25/11/2021

25 November, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

GOLD weekly uptrend opportunity based On 1.00 Lot Calculation:

  • RECENT PRICE ACTION: Gold has lost around 5.00% over the past two weeks to test its lowest rate in three weeks ($1778.24). The daily Relative Strength Index fell close to its oversold threshold of 30, signaling that the downside is limited.
  • EVENT: INFLATION (CPI) FOR OCTOBER (6.2% vs. 5.8% exp.). Inflation rose to the highest since 1990. Inflation has continued to rise, moved up by high stimulus packages provided by the US Federal Reserve and the US Congress. A rising inflation usually increases demand for gold as the asset is traditionally considered a store of value, which tends to protect the purchasing power of people’s wealth amid higher inflation. November Inflation data will be released on December 10 at 13:30 GMT.
  • EVENT: US GOVERNMENT STIMULUS: The US Congress passed the infrastructure bill worth around 1 trillion dollars. Another one, worth 1.75 trillion dollars, is expected to be passed later this month. This high spending could keep inflation persistently high. This may support the Gold prices.
  • ANALYSTS OPINION (GOLDMAN SACHS/CITIGROUP/WELLS FARGO/COMMERZBANK/CREDIT SUISSE/ BANK OF AMERICA): GOLDMAN SACHS said that Gold is well placed for a boom, targeting still $2000. CITIGROUP sees Gold at $1950. Wells Fargo (The third largest bank in the US by assets) 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 1959-1966, potentially could extend to $2075. BANK OF AMERICA expects the Gold price to reach $1900 in the Q4 2021.

GOLD, November 25, 2021
Current Price: 1789

GOLD

Weekly

Trend direction

UP

Resistance 3

1900

Resistance 2

1870

Resistance 1

1830

Support 1

1750

Support 2

1735

Support 3

1720

Example of calculation base on weekly trend direction for 1.00 Lot*

GOLD

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

11,100.00

8,100.00

4,100.00

-3,900.00

-5,400.00

-6,900.00

Profit or loss in €**

9,890.93

7,217.71

3,653.41

-3,475.19

-4,811.80

-6,148.42

Profit or loss in £**

8,321.34

6,072.33

3,073.65

-2,923.71

-4,048.22

-5,172.72

Profit or loss in C$**

14,038.50

10,244.31

5,185.39

-4,932.45

-6,829.54

-8,726.64

* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 09:00 (GMT) 25/11/2021
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

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