Gold weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT: U.S. FEDERAL RESERVE INTEREST RATE DECISION and PRESS CONFERENCE (Wednesday, September 21st, 13:00 GMT+1 and 13:30 GMT+1): The FOMC will announce its latest decision for short term interest rates in the United States. The U.S. central bank is trying to curtail inflation without pushing the American economy into a deeper recession. There is a 74% chance it will raise the interest rate by 75 basis points at the time of this writing. An increase of 75 basis points instead of 100 basis points would be positive for Gold.
- GEO-POLITICAL EVENTS: The war in Ukraine has entered its 7th month. Tensions remain elevated between China and Taiwan. Civil unrest is picking up in Libya. There is now a conflict flaring between Armenia and Azerbaijan Gold is considered to be a safe-haven asset and a preferred holding in times of global uncertainties.
- THE US ECONOMY HAS OFFICIALLY ENTERED A RECESSION. The United States GDP printed at -0.6% 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. The first reading of the United States’ 3rd Quarter GDP will be on October 27th, 2022.
- 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. Today Gold has fallen to its lowest level ($1,654.03) since April 2020.
- TECHNICAL ANALYSIS: STRONG SUPPORT AROUND $1700. Since May 2020 until yesterday, Gold has held above $1700, trying to breach below that level only six times. Every time it tested levels below $1700, it would immediately return above that level, confirming a strong support area below $1700. Current daily and weekly technical indicators show Gold is currently in an oversold position and may be well positioned for a reversal at these levels.
- ANALYSTS OPINION: Goldman Sachs six month price target to $1950. Citigroup forecasts $1900. Commerzbank expects $1900 by the end of 2022.
GOLD, September 16, 2022
Current Price: 1,650.00
|
Gold |
Weekly |
|
Trend direction |
|
|
1,800.00 |
|
|
1,750.00 |
|
|
1,700.00 |
|
|
1,610.00 |
|
|
1,570.00 |
|
|
1,530.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
15,000.00 |
10,000.00 |
5,000.00 |
-4,000.00 |
-8,000.00 |
-12,000.00 |
|
Profit or loss in €2 |
15,082.35 |
10,054.90 |
5,027.45 |
-4,021.96 |
-8,043.92 |
-12,065.88 |
|
Profit or loss in £2 |
13,211.90 |
8,807.93 |
4,403.97 |
-3,523.17 |
-7,046.35 |
-10,569.52 |
|
Profit or loss in C$2 |
19,741.20 |
13,160.80 |
6,580.40 |
-5,264.32 |
-10,528.64 |
-15,792.96 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 08:52 (GMT+1) 16/09/2022
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.