GOLD weekly uptrend opportunity based On 1.00 Lot Calculation:
- GOLD PRICE ACTION: Gold has lost around 150 dollars (or around 8%) in June to test levels close to $1750 (its lowest rate in eleven weeks). Gold was trading around $1900 in the beginning of the month of June. Gold started to recover in July, trying to get back above $1800. Given current conditions and expectations gold currently provides favorable market prices.
- EVENT: INFLATION (CPI) (Tuesday, JULY 13 AT 13:30 GMT+1): PREVIOUS: INFLATION (CPI) FOR MAY (JUNE 10): 5.00% vs. EXPECTED 4.7%. 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.
- EVENT: US FEDERAL RESERVE MEETING (Wednesday, JULY 28 AT 19:00 GMT+1). FED CHAIR JEROME POWELL SPEAKS AT 19:30 GMT+1. PREVIOUS US FEDERAL RESERVE TO MEETING JUNE 16, 2021: INTEREST RATE: Interest rate median projections showed now that there should be two increases in 2023, compared to none back in March projections. Several policy makers now see at least one hike in 2022. BOND PURCHASING PROGRAMME (120 billion per month): For the moment they will keep buying the same amount but Chair Jerome Powell said at a press conference that officials had begun a discussion about reducing bond purchases (You can see this meeting as the 'talking about talking about' meeting). INFLATION EXPECTATIONS: The Federal Reserve expects inflation will climb to 3.4% this year. In March, the Fed predicted inflation would be 2.4% for this year.
- FISCAL STIMULUS CONTINUED TO RISE TO FEED HIGHER INFLATION: US President Joseph Biden is expected to support a budget proposal for the coming fiscal year (Starting October 1, 2021) that would increase spending to $6 trillion dollars. In his first address to Congress, President Joe Biden also laid out a $1.8 trillion social-support plan. That’s in addition to the $2.25 trillion infrastructure bill proposal. US President Joseph Biden signed the $1.9 trillion stimulus into law on March 11, 2021.
- ANALYSTS OPINION (GOLDMAN SACHS/CITIGROUP/WELLS FARGO/COMMERZBANK/ CREDIT SUISSE/ BANK OF AMERICA): GOLDMAN SACHS has a target price of $2000. CITIGROUP price target stands at 1950. WELLS FARGO 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 OF $1959- $1966, which rally could potentially extend to $2075. BANK OF AMERICA maintains an average price target of $1845 for 2021.
GOLD, July 7, 2021
Current Price: 1797
|
GOLD |
Weekly |
|
Trend direction |
|
|
1950 |
|
|
1910 |
|
|
1850 |
|
|
1750 |
|
|
1725 |
|
|
1700 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
GOLD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
15,300.00 |
11,300.00 |
5,300.00 |
-4,700.00 |
-7,200.00 |
-9,700.00 |
|
Profit or loss in €** |
12,942.74 |
9,559.02 |
4,483.43 |
-3,975.87 |
-6,090.70 |
-8,205.53 |
|
Profit or loss in £** |
11,092.10 |
8,192.21 |
3,842.36 |
-3,407.38 |
-5,219.81 |
-7,032.25 |
|
Profit or loss in C$** |
19,035.19 |
14,058.67 |
6,593.89 |
-5,847.41 |
-8,957.74 |
-12,068.06 |
* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 8:55 a.m. (GMT+1) 07/07/2021
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