Gold (XAU/USD): Fundamental Review & Forecast

A wave of optimism on the market is pushing gold prices down. Consider this as another opportunity to profit from buy deals.

Fundamental Analysis
2019年9月13日

The rates continue within an uptrend. Gold reached the highest level for the last six years in early September, but then began to fall rapidly due to the wave of optimism that began on the market. At the same time, we see a consolidation of the rates and the formation of a flat trend, starting in August, with a range of 1485-1551.8 dollars.

The decline in gold prices began a week ago, after the announcement of a new round of negotiations between China and the United States. Both sides of the conflict expressed a wish to reach an agreement and end their conflict. Investors willingly believed in it. Since then, we have seen an increase in the demand for risky assets, which led to the strengthening of the dollar, which is also periodically supported by good macroeconomic reports. In particular, the consumer price index rose for the 11th consecutive month by 0.3%. A good situation is also observed on the labor market, despite the reduction in the number of vacancies. However, the dollar remains under pressure due to the likelihood of a further easing of the FED's monetary policy, which is required by the administration of Donald Trump.

We can see on the chart a testing of the support line and its shifting downwards. However, the factors supporting gold are waiting for their time and will not disappear in the near future. Therefore, the decline in gold prices should be considered as another opportunity to earn on the growth of prices after the completion of the price correction. At the same time, the flat trend is likely to continue, replacing the uptrend. Most of the technical analysis tools indicate the efficiency of the deals to BUY. The Stochastic oscillator points that the rates are in the oversold zone, which finally convinced us in the deals to BUY.

Stanislav Litinskyi

Fundamental Analysis

NZD/USD: Fundamental Review & Forecast

The first half of September was good for the NZD but the USD can be stronger in the near future.

Stanislav Litinskyi
2019年9月11日

Fundamental Analysis

Oil (CL/WTI): Review and Short-term Forecast

The wave of optimism will not last for a long time. The deals to SELL seem the most effective.

Stanislav Litinskyi
2019年9月05日

Fundamental Analysis

GBP/JPY: Fundamental Review & Forecast

The GBP has a chance this week but most of factors are still negative. The deals to BUY can be effective in the short term only.

Stanislav Litinskyi
2019年9月04日