CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

GOLD

Market Opportunities - 09/08/2022

09 August, 2022

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:

  • EVENT: (Wednesday, August 10th, 13:30 GMT+1): U.S. INFLATION FOR JULY is forecast to fall 8.7% from June’s 9.1%. However Core Inflation is expected to increase to 6.1% in July from 5.9% in June. Inflation remains strong despite the U.S. Federal Reserve’s latest attempts to reign it in with higher rates. Higher inflation usually increases demand for Gold as the asset is traditionally considered a store of value.
  • THE US ECONOMY HAS OFFICIALLY ENTERED A RECESSION. The United States GDP printed at -0.9% for its 2nd Quarter. This was the second consecutive negative GDP report, after Q1’s -1.6%, indicating the United States is in a recession.
  • STATISTICS ON GOLD PERFORMANCE DURING AN ECONOMIC RECESSION: According to SuisseGold, there have been 8 recessions since 1976 (since the US dropped the gold standard). Historically, Gold tends to rise on average by 7.89% during an economic recession.

SOURCE: SuisseGold

Please note that past performance does not guarantee future results.

  • GOLD PRICE ACTION: Gold reached $2070.06 in 2022. Gold has fallen ever since by around 19%, to test its lowest rate since August 2021 ($1680.57).
  • TECHNICAL ANALYSIS: STRONG SUPPORT AT $1700. Since May 2020, Gold has held above $1700, trying to breach below that level only four times. Every time it tests levels below $1700, it would immediately return above that level, confirming a strong support area below $1700.
  • ANALYSTS OPINION: Goldman Sachs raised its price target to $2500 by the end of 2022. Citigroup forecasts $1900. Commerzbank expects $1900 by the end of 2022.

GOLD, August 9, 2022
Current Price: 1,780.00

Gold

Weekly

Trend direction

UP

Resistance 3

2,030.00

Resistance 2

1,930.00

Resistance 1

1,850.00

Support 1

1,720.00

Support 2

1,660.00

Support 3

1,600.00

Example of calculation base on weekly trend direction for 1.00 Lot1

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

25,000.00

15,000.00

7,000.00

-6,000.00

-12,000.00

-18,000.00

Profit or loss in €2

24,505.96

14,703.58

6,861.67

-5,881.43

-11,762.86

-17,644.29

Profit or loss in £2

20,699.48

12,419.69

5,795.85

-4,967.87

-9,935.75

-14,903.62

Profit or loss in C$2

32,145.50

19,287.30

9,000.74

-7,714.92

-15,429.84

-23,144.76

1. 1.00 lot is equivalent of 100 units

2. Calculations for exchange rate used as of 08:09 (GMT) 09/08/2022

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 details.
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