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 |
|
|
1900 |
|
|
1870 |
|
|
1830 |
|
|
1750 |
|
|
1735 |
|
|
1720 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
GOLD |
||||||
|
Pivot Points |
||||||
|
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