Equity markets climbed in Europe yesterday
Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
GOLD: the inevitable $1,800 ahead
Information is not investment advice
Recently, gold climbed above $1,750 coming to test the resistance of May’s high of $1,764. That came as a result of a decisive day-long march upwards on Friday where it left the base at $1,722. What does it mean?
Friday was pretty full of second-wave fears and social clashes. Until now, both remain on the radar. Therefore, until we see people leave the streets and calm down, specifically in the US, and investors finish factoring in the reoccurrence of the virus at a large scale, gold will have the full right to rise.
Technically, we may well see more aggressive growth of the gold price. On the daily chart, the current rise to the highs of $1,750 and above merely completes the latest sideways episode at the higher border of the channel. In the meantime, the overall trend still has a lot of room for further advance upwards.
In the long-term, however, there is little evidence – so far – to expect the current curve (“2”) to be as steep as it was during the crisis of 2009-2010 (“1”). At the same time, while it has a milder inclination, it still has not entered the rounding-up stage, which geometrically is likely to open at approximately $1,800. For this reason, it is safe to assume that the current uncertainty about the second wave and other global issues will provide enough fuel to drive the gold price to $1,800 almost in a straight trajectory. Later on, however, it will ease if the global environment improves. If it doesn’t – the upward curve is still there…
Similar
Brutal session in the equity markets yesterday
Ichimoku Kinko Hyo EUR/JPY: The EUR/JPY pair is now trading within the Kumo…
The U.S. economy added 390,000 jobs in May
Ichimoku Kinko Hyo USD/JPY: The USD/JPY pair is now trading above the Kumo…
Popular
Best Instruments to Trade This Week
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
European Currencies Ahead of the Banks' Statements
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
Will the FOMC Surprise the Markets?
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Choose your payment system
