Gold Weekly Special Report based on 1.00 Lot Calculation:
EVENTS:
- US Inflation (Wednesday, June 12th, 2024 - 13:30 GMT+1) The United States will report its CPI for May. April CPI came in at 3.4%, Year-over-Year, well below its peak of 9.1% peak in 2022. Inflation continues to trend lower, with levels approaching the Federal Reserve’s 2% target. The lower inflation could be positive for gold, as the US dollar could weaken.
- US Federal Reserve Interest Rate Decision (June 12th, 2024 - 19:00 GMT+1): The Federal Reserve Bank will meet on June 12th to set the Fed Funds rate target. According to the most recent estimates, analysts are expecting the Federal Reserve to hold interest rates at the current level of 5.50%. However, with inflation falling in April, the Federal reserve may reconsider its current rate policy, and could look to implement cuts sooner, which could drive gold prices higher.
ANALYST OPINION
- WESTERN CENTRAL BANKS BEGIN CUTTING INTEREST RATES, WITH THE BANK OF CANADA AND EUROPEAN CENTRAL BANK CUTTING RATES 0.25%: Both the Bank of Canada and the European Central Bank have begun cutting interest rates, with the European central bank cutting rates for the first time since March 2016. Markets now expect that this will put pressure on the Federal Reserve to begin its own rate cutting cycle. Interest rate cuts may lead to a weaker US dollar and could catalyze a move higher in gold.
- CENTRAL BANKS CONTINUE THEIR STRONG GOLD BUYING, WITH Q1 BUYING THE STRONGEST ON ANY YEAR ON RECORD: According to the World Gold Council, Q1 gold buying recorded 290t, the highest Q1 buying rate in history. The World Gold Council expects demand to remain robust in 2024.
- UBS: GOLD COULD REACH THE MARK OF $4000. UBS predicts that the price of gold may nearly double from now to 4,000 US dollars/ounce.
- CITIGROUP: GOLD COULD HIT $3000 WITHIN THE NEXT 12 TO 18 MONTHS. Gold could rise 50% if central banks sharply ramp up purchases of the yellow metal, a possible stagflation, or in case of a deep global recession. However, the price could also decline further. Central banks’ gold purchases have “accelerated to record levels” in recent years, as they seek to diversify reserves and reduce credit risk. China and Russian central banks are leading gold purchases, with India, Turkey, and Brazil, also increasing bullion buying.
GOLD, June 10, 2024
Current Price: 2290
|
GOLD |
Weekly |
|
Trend direction |
|
|
3000 |
|
|
2600 |
|
|
2350 |
|
|
2230 |
|
|
2220 |
|
|
2210 |
Example of calculation based on weekly trend direction for 1.00 Lot
|
Gold |
||||||
|
|
||||||
|
Profit or loss in $ |
71,000.00 |
31,000.00 |
6,000.00 |
-6,000.00 |
-7,000.00 |
-8,000.00 |
|
Profit or loss in €² |
65,985.13 |
28,810.41 |
5,576.21 |
-5,576.21 |
-6,505.58 |
-7,434.94 |
|
Profit or loss in £² |
55,823.75 |
24,373.75 |
4,717.50 |
-4,717.50 |
-5,503.75 |
-6,290.00 |
|
Profit or loss in C$² |
97,795.05 |
42,699.25 |
8,264.37 |
-8,264.37 |
-9,641.77 |
-11,019.16 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 09:40 (GMT+1) 10/06/2024
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient 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 Senior Account ManagerClient Manager for more details.