Gold weekly uptrend opportunity based On 1.00 Lot Calculation:
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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.
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RUSSIA TO FACE MORE SANCTIONS THAT COULD LEAD TO FURTHER ESCALATIONS: The EU is still considering sanctions against the Russian oil and natural gas, while Russia says the EU should pay in Russian Rubles if they do not want to stop receiving oil and gas from Russia. This could easily lead to economic recessions across the globe, pushing investor to look for protection with the safe- haven Gold.
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US APRIL INFLATION CAME IN AT 8.3% (VS. 8.1% EXPECTED), BUT BELOW MARCH’S 8.5% (WHICH WAS THE HIGHEST SINCE 1982). Inflation has continued to rise. 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.
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EVENT (TUESDAY, MAY 17 AT 19:00 GMT+1): FED CHAIR JEROME POWELL SPEAKS. The Fed chair is again to give signals what could be the next Fed move regarding the interest rates. The markets expected an increase of 75 basis points on June 15, while Mr. Powell kept supporting 50 basis points. If the 50 basis points confirmed, that we can expect Gold to recover.
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ANALYSTS OPINION (GOLDMAN SACHS/ WELLS FARGO/ CREDIT SUISSE/): GOLDMAN SACHS: We are raising our 6- 12 month gold target to $2500 from $2150 per ounce. Their 3-month target is 2300. Wells Fargo (The third largest bank in the US by assets) sees Gold at $2100- $2200. CREDIT SUISSE gold potentially could extend to $2075.
Gold, May 16, 2022
Current Price: 1785
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Gold |
Weekly |
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Trend direction |
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|
2040 |
|
|
1950 |
|
|
1850 |
|
|
1725 |
|
|
1700 |
|
|
1680 |
Example of calculation base on weekly trend direction for 1.00 Lot1
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GOLD |
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Pivot Points |
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Profit or loss in $ |
25,500.00 |
16,500.00 |
6,500.00 |
-6,000.00 |
-8,500.00 |
-10,500.00 |
|
Profit or loss in €2 |
24,486.27 |
15,844.06 |
6,241.60 |
-5,761.47 |
-8,162.09 |
-10,082.58 |
|
Profit or loss in £2 |
20,839.80 |
13,484.58 |
5,312.11 |
-4,903.48 |
-6,946.60 |
-8,581.10 |
|
Profit or loss in C$2 |
33,000.06 |
21,352.98 |
8,411.78 |
-7,764.72 |
-11,000.02 |
-13,588.26 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 09:00 (GMT+1) 16/05/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail