Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

GOLD: back to indifference

GOLD: back to indifference

Information is not investment advice

Defying the natural

On the daily chart, we see gold behaving in a very strange way. In December-January, when the US-China trade agreement was announced to be sealed and was finally signed, it was rising (what?). When the virus struck and went “wild” in January-February, gold barely moved a finger (again, what?). That’s not an exaggeration because the famous local high of $1,700 seems to be quite naturally on the way of the upward-marching metal since November (that I see). Therefore, the virus doesn’t seem to introduce any additional velocity for the gold price to move up quicker. More to that, it dropped to $1,450 per ounce. In defiance of all the “laws of safe havens”, it went down. But now, it is back up. The question is, to where?

Indeed, to where?

The trend marked on the chart clearly serves as “convertible” support: currently, the price is testing it as resistance. But even if it does cross it upwards, what will that mean? It will merely get into the trajectory of indifference which has been there since winter. But as it serves as resistance now, it still needs to be passed, and given the odd way gold behaves, it isn’t very likely to happen soon. Rather, gold seems to go into sideways mood along with the current level of $1,626, possibly even going down again. In the end, its’ leap from the ranges of $1,450 to $1,626 was really straight and steep, it will probably retrace now.

Don’t worry

How to interpret gold’s behavior? Unlike going fundamental with stocks, I suggest going technical with gold. The reality is that there are apparently so many factors overlapping and overwhelming the gold market that its behavior becomes almost completely sporadic and unpredictable, like a permanent shock. Probably, using oscillators and trend markers will be more helpful as fundamentals seem to affect it like hollow-point bullets: enters at one trajectory, exits somewhere else. Anyways, not to worry, $1,700 per ounce will be there eventually, and it is not too far away.

XAUUSDDaily.png

                                                                                                LOG IN

Similar

Popular

It’s Time to Look at New Zealand

Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later