Gold : Fundamental Factors
1) The price of gold didn’t change much on Wednesday due to some mixed inflation data in the US, which created uncertainty about the economy and the path of monetary policy.
2) The consumer price index increased by 6.4% in the 12 months through January, which was faster than the 6.2% economists had expected. This was due to higher rental housing and food costs.
3) Oil prices fell after the U.S. government said it would release more crude from its Strategic Petroleum Reserve, lifting some supply concerns from the market.
4) The Federal Reserve is likely to keep raising interest rates due to inflation remaining relatively high, which could be bad news for gold and other non-yielding assets. However, gold could benefit from increased safe-haven demand this year, given the prospect of a recession and economic slowdown.
The trend is likely to Bearish
Fundamental Range : 1849.26 – 1,856.85
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 :1866.56,1872.91,1883.17
Support Area : 1846.04,1839.69,1829.43
Pivot point : 1856.30
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 sell at the daily chart by using the resistance point 1, 1866.56 and the take profit will be at the pivot point ,1856.30 (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
For further information, contact me ,Gurmit at +60142584067, I will guide anyone who wants to register with Weltrade. You can register at the link below. Thank you.
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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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