Gold weekly uptrend opportunity based On 1.00 Lot Calculation:
-
RUSSIA- UKRAINE WAR: President Vladimir Putin announced an attack on Ukraine on February 24, 2022, days after he recognized two breakaway regions of Russia’s neighbor as independent. Attacks are occurring in Kyiv, Odessa, Mariupol and other locations in Ukraine.
BREAKING NEWS (JUNE 26): SOME G- 7 COUNTRIES (US, UK, CANADA, JAPAN) BAN GOLD IMPORTS FROM RUSSIA. Gold exports are a major source of revenue for Russia in terms of their ability to transact with the global financial system. Last year, they were worth 12.6 billion pounds ($15.45bn) and wealthy Russians have been buying bullion to reduce the financial effect of Western sanctions. The London gold market had already suspended six Russian refineries in action announced on March 7. -
US INFLATION FOR MAY INCREASED TO 8.6% (EXP.:8.3%). (WHICH WAS THE HIGHEST SINCE 1981). 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.
-
GOLBAL ECONOMIC RECESSION FEARS GROW AS RISING INTIEREST RATES DESTIMULATE ECONOMIC GROWTH. As interest rates started to rise across the globe, it may be possible that the global economy will slow down and it will eventually end up in a recession along with multi decade high inflation rates. Meanwhile, investors will be pushed towards the safe-haven Gold, looking for protection from market declines.
-
GOLD SEES PSYCHOLOGICAL SUPPORT AT $1800. Gold has again tested levels below 1800, only the fourth time in total in 2022. Trading in 2022, Gold’s lowest price was 1780. Statistically, every time when Gold tests levels below 1800, it manages to recover. Trading in 2022, Gold’s highest price was $2070.06.
-
RECENT PRICE ACTION: GOLD HAS HAD A DOWNWARD CORRECTION OF AROUND 13.50% OVER THE PAST FOUR MONTHS (FROM $2070 TO $1786). In early July, Gold tested level below 1800, fourth time in 2022.
-
ANALYSTS OPINION: GOLDMAN SACHS raised its price target to $2500 by the end of 2022. CITIGROUP forecasts $1900. Commerzbank also targets $1900 by the of 2022.
Gold, July 1, 2022
Current Price: 1790
|
Gold |
Weekly |
|
Trend direction |
|
|
1900 |
|
|
1870 |
|
|
1840 |
|
|
1750 |
|
|
1725 |
|
|
1700 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
GOLD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
11,000.00 |
8,000.00 |
5,000.00 |
-4,000.00 |
-6,500.00 |
-9,000.00 |
|
Profit or loss in €2 |
10,525.41 |
7,654.84 |
4,784.28 |
-3,827.42 |
-6,219.56 |
-8,611.70 |
|
Profit or loss in £2 |
9,082.65 |
6,605.57 |
4,128.48 |
-3,302.78 |
-5,367.02 |
-7,431.26 |
|
Profit or loss in C$2 |
14,212.00 |
10,336.00 |
6,460.00 |
-5,168.00 |
-8,398.00 |
-11,628.00 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 09:50 (GMT+1) 01/07/2022
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 detail