CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Gold

Special Reports - 21/06/2024

21 June, 2024

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Gold Weekly Special Report based on 1.00 Lot Calculation:

GEOPOLITICS

  • TENSIONS BETWEEN ISRAEL AND HEZBOLLAH FLARE UP, WITH POSSIBILITY OF WIDER WAR IN THE MIDDLE EAST RISING SHARPLY: The most recent exchange between Israeli ministers and the leader of Hezbollah suggest that tensions in the Middle East could boil over, and Israel may begin operations against the militia in Lebanon. Such a conflict could drag other major countries in, and the whole Middle East may be disrupted. The conflict could have severe consequences on the global economy, which could drive demand for gold.

EVENTS:

  • EVENT (Q1 GDP THIRD READING - THURSDAY JUNE 27, 2024 - 13:30 GMT+1): The US will be reporting its third and final GDP reading. If the GDP print comes in lower than expected, that could increase the chances of an interest rate cut and may push gold prices higher.
  • EVENT (INITIAL JOBLESS CLAIMS- THURSDAY JUNE 27, 2024 - 13:30 GMT+1): The US will report its weekly initial jobless claims. Jobless claims have been rising, indicating a slowing job market. This could cause a dovish shift in the Federal Reserve’s interest rate stance and may increase gold prices.
  • EVENT (CORE PCE PRICE INDEX - MAY - FRIDAY JUNE 28, 2024 - 13:30 GMT+1): The US is slated to report its Core PCE Price Index print for the month of May on June 28th, 2024. The PCE Price Index is the Federal Reserve’s preferred inflation gauge and will be watched closely by markets and investors alike. At the previous reading the PCE Price Index came in line with expectations. Should the PCE Price Index come in lower than expected this time around, it could catalyze a move higher in gold.
  • US NFP and Unemployment (Friday, July 5th, 2024 – 13:30 GMT+1): The United States will be releasing Nonfarm payrolls and Unemployment rate data. If the Nonfarm payrolls continue to fall while unemployment rises, there could be extended US dollar weakness and may push gold higher.

OTHER NEWS:

  • MOST RECENT CENTRAL BANK SURVEY HIGHLIGHTS CENTRAL BANKS REMAIN COMMITTED TO BUYING GOLD IN 2024: A survey conducted by the World Gold Council (WGC) asked central banks if they plan to increase their gold holdings. Of the 70 respondents, 29% of them confirmed they will continue to add gold in 2024, which is the highest number of central banks committing to further gold buying since the survey began back in 2018.
  • 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 could 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.

ANALYST OPINION

  • 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 21, 2024
Current Price: 2365

GOLD

Weekly

Trend direction

UP

Resistance 3

3000

Resistance 2

2600

Resistance 1

2430

Support 1

2300

Support 2

2290

Support 3

2280

Example of calculation based on weekly trend direction for 1.00 Lot

Gold

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

63,500.00

23,500.00

6,500.00

-6,500.00

-7,500.00

-8,500.00

Profit or loss in €²

59,394.36

21,980.59

6,079.74

-6,079.74

-7,015.08

-7,950.43

Profit or loss in £²

50,170.66

18,567.09

5,135.58

-5,135.58

-5,925.67

-6,715.76

Profit or loss in C$²

86,921.66

32,167.86

8,897.49

-8,897.49

-10,266.34

-11,635.18

1. 1.00 lot is equivalent of 100 units

2. Calculations for exchange rate used as of 09:45 (GMT+1) 21/06/2024

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.
Share It With Your Network
GOLD Chart
Update Time: -
Highest
Lowest
1M 5M H D W
Prices are loading..
Ready for trading?Start Now