Gold weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT: (Friday, August 26th, 15:00 GMT+1): U.S. Federal Reserve Chairman Jerome Powell will speak at the Jackson Hole Economic Symposium. The event is hosted by the Kansas City Federal Reserve Board and brings together bankers, economists and academics from around the world. Chairman Powell has addressed this group four times (2018, 2019, 2020, 2021) in the past and all four times Gold has moved higher after he spoke.
- 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 six month price target to $1950. Citigroup forecasts $1900. Commerzbank expects $1900 by the end of 2022.
GOLD, August 19, 2022
Current Price: 1,750.00
|
Gold |
Weekly |
|
Trend direction |
|
|
2,030.00 |
|
|
1,900.00 |
|
|
1,820.00 |
|
|
1,690.00 |
|
|
1,620.00 |
|
|
1,550.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
28,000.00 |
15,000.00 |
7,000.00 |
-6,000.00 |
-13,000.00 |
-20,000.00 |
|
Profit or loss in €2 |
27,854.32 |
14,921.96 |
6,963.58 |
-5,968.78 |
-12,932.36 |
-19,895.94 |
|
Profit or loss in £2 |
23,659.04 |
12,674.49 |
5,914.76 |
-5,069.79 |
-10,984.55 |
-16,899.31 |
|
Profit or loss in C$2 |
36,379.84 |
19,489.20 |
9,094.96 |
-7,795.68 |
-16,890.64 |
-25,985.60 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 13:13 (GMT) 19/08/2022
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.