Gold : Fundamental Factors
1) Prelim UoM Consumer Sentiment is expected to be at 65.0 compared to 64.9 previously.
2) The value of gold has gone down in recent days due to increasing expectations that the Federal Reserve (the US central bank) will raise interest rates. This has caused gold prices to drop to their lowest level in a month.
3) Unemployment claims was released which showed mixed results, leading to uncertainty about the strength of the US job market. The possibility of a US recession is also making people worried and affecting the value of gold, as well as other precious metals like silver and platinum.
4) The situation with copper prices is the market is optimistic about increasing demand in China, but also concerned about the possibility of a recession. This week, investors will be paying attention to Chinese inflation data to see if people have been spending more money recently.
5) Today, the stock market in the US is down despite good earnings reports from companies like Disney, PepsiCo and AbbVie. Jobless claims were slightly higher than expected but still remain under 200,000, indicating a tight labor market. Investors are worried about the Federal Reserve continuing to raise interest rates. Analysts expect the Fed to raise rates to 5% by July and believe there will be another rate hike in March. The Fed will be watching next week’s data on consumer prices and retail sales to guide its policy. PayPal is set to report earnings today and is expected to have $1.20 earnings per share on $7.4 billion in revenue.
The trend is Bullish
Fundamental Range : 1845.24- 1876.32
Gold : Technical Analysis
Check at Daily Timeframe Support and Resistance for Fibonacci.
Check based on the current timing for the Support and Resistance when you want to go into trade.
Resistance Area : 1882.43,1889.76,1901.64
Support Area : 1858.67,1851.34, 1839.46
Pivot point : 1870.55
Confirm with technical indicators and based on your own technical analysis for the trend.
Check investing.com to get more info on what most indicator would display
Check higher timeframe also for more confirmation for entry in Daily timeframe.
The technical indicator display sell in Daily and strong buy in weekly and strong buy in monthly timeframe.
Use linear regression to get confirmation trend at daily as they are not available in investing.com
Linear regression shows upward trend at the daily timeframe .Can check linear regression trend in weekly and monthly for more confirmation.For weekly, it is downtrend and for monthly,it is showing uptrend.
Use Bolinger Band Strategy Tester and RSI Strategy Tester to get more confirmation for the trend and percent profitable.Check at bigger timeframe also such as weekly and monthly.
Ensure that both RSI strategy and Bolinger Band Strategy gives above 50%. for the percent profitable
RSI strategy tester and Bolinger Band Strategy Tester at the daily and weekly has percentage higher than 50% , and monthly has lesser than 50% for the RSI strategy Tester and Bolinger Band Strategy Tester.
Gold : Find buy at the daily chart by using the support point 1,1858.67 and the take profit will be at the pivot point , 1870.55 (SEE CURRENT MARKET PRICE)
See current market and find the nearest support point for entry and take profit at the pivot point.
Fundamental and Technical analysis must be aligned
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DISCLAIMER :This analysis is based on Investing.com and Forexfactory.com. You may follow based on your own discreetion.
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