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Forex analytical forecast for today, October 3, for USD/JPY, NZD/USD, gold and cryptocurrencies
USD/JPY, currency, NZD/USD, currency, Bitcoin/USD, cryptocurrency, Gold, mineral, Forex analytical forecast for today, October 3, for USD/JPY, NZD/USD, gold and cryptocurrencies USD/JPY: The dollar continues to hold record positionsThe US dollar continued to develop a gradual but steady growth in the Asian trading session, having resumed the testing of the level of 145.00, with the prospect of overcoming it. The U.S. currency continues to be attractive for the market participants in anticipation of the further steps on tightening of the US FRS monetary parameters, announced the day before. It is expected that the regulator plans at least another increase in interest rates by the end of this year, the more so as experts allow for a correction of 1.25%.Japanese regulator prefers to maintain the same position in order to avoid resumption of the past deflationary effects. Earlier the macroeconomic data was published in Japan that increased the negative factors for the national currency. Thus, Tankan index, showing the dynamics of large enterprises in Q3 decreased to 8.0 points from the previous 9.0 points against expectations of the market to strengthen to 11.0 points, and PMI (business activity index) of the manufacturing sector from Jibun Bank Japan decreased to 50.8 points for September from the previous 51.0 points a month earlier against expectations of the growth to 51.5 points.Resistance levels: 145.00, 146.00, 147.00, 148.00.Support levels: 144.00, 142.54, 141.50, 140.78.NZD/USD: The New Zealand currency is moving in a weak corrective growthThe New Zealand dollar is moving within the weak strengthening during the morning session, moderately recovering from the strong losses suffered last week, testing the 0.5633 level. At the end of the previous trading week traders increased demand for the dollar during Friday's trading after reading the Consumer Price Index data, which showed another strengthening. Moreover, the statistics from the United States only supported consumer sentiment. According to the data, the U.S. households in August increased their incomes by 0.3%, which meets the experts' preliminary expectations, while personal expenses went up by 0.4% against decrease by 0.2% in the previous month, while economists expected correction by 0.2% only.The New Zealand currency was put under increased pressure by the statistics from China released the day before. Thus, the volume of approved applications for construction work in New Zealand in August fell by 1.6% from 4.9% the previous month, with the analysts' forecasts of strengthening by 2.0%. Chinese data had disappointed with a strong decline of services PMI for September to 50.6 points against expectations of 52.6 points.Resistance levels: 0.5650, 0.5720, 0.5800, 0.5850.Support levels: 0.5563, 0.5467, 0.5400, 0.5300.Gold pricesThe precious metal is priced at 1660.00, enjoying moderate support amid the uncertainty in the US currency towards the end of the previous week, still leaving the bulls under the influence of negative factors. Moreover, the safe-haven asset continues to remain vulnerable to rising US Treasury yields.There are still probability that gold will resume its downward trend this week, because the world's leading regulators maintain their stance on the necessity to tighten monetary policy. According to reliable data, officials from the Australian Central Bank are expected to meet on October 4 to raise the interest rate to 2.85% from 2.35%. On Wednesday, the New Zealand regulator will adjust its key rate to 3.5% from the current 3.0%. By Friday market participants will expect statements from ECB (European Central Bank) and Bank of England wishing to evaluate regulators' intentions to tighten monetary parameters due to inflation reaching 10.0% in Eurozone countries.Resistance levels: 1675.00, 1688.58, 1700.00 and 1720.00.Support levels: 1653.92, 1640.00, 1620.00, 1600.00.Cryptocurrency analysisThe first cryptocurrency BTC has been holding in the price range of 19800.00-18750.00 for about two weeks. The previous week the altcoin tested the upper resistance level, but the attempts were not successful and the "bears" retook the advantage of the asset.Like the entire digital asset market, BTC continues to be under pressure over the long term. The dominance of hawks at the U.S. Federal Reserve promoting systemic monetary policy tightening, as well as widespread increased interest from regulators in the turnover of funds on crypto markets in the world's leading economies, geopolitical instability and risks of the beginning of recession by region significantly reduce the attractiveness of investment instruments among institutional market participants. In addition, analysts report that the popularity of crypto-assets is losing demand even among traders in the medium and small segments of the market. As reported in the results of Bankrate's survey of American teenagers, in 2022, no more than 30% of respondents showed interest in cryptocurrencies, compared to 50% in 2020. According to experts, earlier interest was due primarily to the rapidly growing value of the tools, allowing investors to quickly earn money, but now the chances for a rapid return decreased many times over.Resistance levels: 19800.00, 21093.75, 21875.00.Support levels: 18750.00, 17800.00, 17187.50, 16900.00. More about Bitcoin tradingIf you are interested in Bitcoin analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest Bitcoin forecasts and signals contain support and resistance levels, as well as stop-loss ...
Forex analytical forecast for today, September 28, for EUR/USD, NZD/USD, Crude oil & Gold
EUR/USD, currency, NZD/USD, currency, WTI Crude Oil, commodities, Gold, mineral, Forex analytical forecast for today, September 28, for EUR/USD, NZD/USD, Crude oil & Gold EUR/USD: the U.S. currency is showing an upward trendThe single currency in Europe is actively declining against its major world competitors, which was triggered by the worsening economic situation in the Eurozone.According to the preliminary estimates of analysts from Nomisma Energia, blue fuel prices for end users can increase up to 60% in Q4 and the next electricity price cap will reach 66.6 cents/kWh, which will exceed the previous quarter's cap by 25.0 cents. The Russian natural gas supply chain has once again been exposed to risks following reports of damage and subsequent collapse of the Nord Stream pipeline in Danish territorial waters. According to comments from Nord Stream AG, the operator of the project, critical damage is confirmed, with no known timeframe for fixing it. Against this backdrop, analysts expect Italy's GDP to be revised downward from past forecasts, which could trump a two-fold decline and inflation could reach 10%. Last month, energy prices gained 44.9% against 42.9% last month, foodstuffs gained 10.5% and long-life goods gained 3.9%. The Italian government has already allocated an additional 50.0 billion euros to stabilize the national economy, but these measures are no longer enough.Support levels: 0.9480 and 0.9300.Resistance levels: 0.9670 and 0.9860.NZD/USD: The "New Zealander" made a new record lowThe New Zealand currency is trading in a moderate decline in the Asian session, having updated record lows since spring 2020. At the moment the NZD/USD instrument reached the 0.5600 mark and continues to decline amid an active strengthening of the U.S. dollar position. Market participants continue to expect an increase in interest rates by the U.S. regulator in the future, due to which they refrain from redirecting their own capital to positions of alternative assets, but the risks of an increase in the rate of decline of global GDP are growing, increasing the likelihood of recession in the regions.Previously released data from the U.S. displayed mixed statistics, but can not become a factor in restraint for the U.S. currency. Thus, durable goods orders for August decreased by -0.2%, having preliminary decreased by 0.1% for the previous month, while experts expected -0.4%. Capital goods orders excluding defense and aviation rose 1.3% after earlier strengthening by 0.3% in July, beating analysts' expectations of a slowdown to 0.2%. At the same time, the residential real estate value index was down 0.6% from 0.1%, while experts had expected the index to strengthen positively to 0.7%. However, demand for new residential homes increased 2.28%, down 8.6% for July.Resistance levels: 0.5650, 0.5720, 0.5800, 0.5850.Support levels: 0.5563, 0.5467, 0.5400, 0.5300.Gold pricesThe bank metal is traded under pressure, testing the level of 1623.0, as the US dollar continues to strengthen and has successfully updated its historical high of 115,000 in the USD Index.It is worth noting for the sake of fairness that the structure of precious metal's fall has no physical component, and the decline in value is due to speculative factors and does not reflect investors' capital outflows. The confirmation is the evaluation of gold investment portfolios on the commodity market trading floor. As follows from the publication of data CFTC (Commodity Futures Trading Commission), last week showed a decrease in contracts for gold, amounting to 65.7 thousand against 97.3 thousand the previous week, but studying in detail the dynamics of the decline, the decline was rather due to the active opening of new positions for sale. Producers have 5.097k in the structure of the portfolio, while the number of contracts on demand has strengthened by 4.513k.Support levels: 1600.0, 1550.0.Resistance levels: 1650.0, 1700.0.Oil market reviewThe price of WTI crude oil is under little pressure in the Asian trading session, reaching the 77.00 level, approaching the annual low.The probability of recession in the world economy is a negative factor for the asset, and macroeconomic data and comments of officials of leading regulators only fuel fears among investors. Market participants were also worried by reports that the eurozone countries are considering imposing a cap on the cost of raw materials for supplies from Russia, which increases the risks of a complete halt to oil imports from Russia to the world markets. The ongoing release of oil from reserve storages in the USA only aggravates already unfavorable situation for the raw material. According to The Wall Street Journal, the national stockpile last week fell to its lowest level since 1984, totaling 427.0 million barrels.Resistance levels: 78.00, 79.24, 81.00, 83.00.Support levels: 76.00, 74.00, 73.00, 72.00. More about EUR/USD tradingIf you are interested in EUR/USD analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest EUR/USD forecasts and signals contain support and resistance levels, as well as stop-loss ...
Forex analytical forecast for today, September 27, for USD/JPY, USD/CHF, Brent & Gold
USD/CHF, currency, USD/JPY, currency, Brent Crude Oil, commodities, Gold, mineral, Forex analytical forecast for today, September 27, for USD/JPY, USD/CHF, Brent & Gold USD/JPY: the instrument is testing a record highThe American currency is moving without a single trend against the Japanese yen, reaching the level of 144.50. A wave of correction in the markets came because of the active strengthening of the US dollar since the beginning of the trading week.Recall, the regulator of Japan decided to keep the key indicator negative at the end of the meeting, held last week, also income from treasury securities for 10 years did not exaggerate the dynamics near zero. Moreover, it was decided to intervene, which hasn't happened since 1998, in order to strengthen the national currency, which has reached its lowest level in 24 years. At the same time, the consumer price index showed an increase in August to 3.0%, which is the highest since September 2016. Investors' desire to find an opportunity to hedge risks amid the geopolitical crisis provides an opportunity to ease pressure on the "Japanese" position and curb the pace of strengthening of the US currency in the pair USD/JPY, at least for the time being.Resistance levels: 145.00, 146.00, 147.00, 148.00.Support levels: 144.00, 142.54, 141.50, 140.78.USD/CHF: The "American" is losing ground in the pairIn the Asian trading session, USD/CHF is retreating from the local high and is testing the level of 0.9965, updated earlier, and is trying to hold below 0.9890.Investors' attention is turned to the changes taking place in the markets, indicating deteriorating prospects for economic growth in the euro area. Taking into account the processes in the U.S. and China, the cumulative situation could have a negative impact on the global scale. At the moment the regulators of the leading world economies intend to control the actively growing inflation by toughening monetary policy. Thus, by the end of this year economists expect another big increase of the key rate by the U.S. Federal Reserve System, and the Bank of England may hold an extraordinary meeting, at the end of which the regulator will increase a similar indicator due to the collapse of the national currency.Resistance levels: 0.9930, 1.0000, 1.0050 and 1.0100.Support levels: 0.9868, 0.9807, 0.9762 and 0.9700.Gold pricesThe price of the precious metal is trading slightly higher, moving away from the record low of April 2020 reached earlier, intending to hold above the resistance level of 1630.00, while uncertainty about the outlook for global markets is growing.The volume of contracts on gold continues to decrease steadily, already this week the number of liquidated contracts exceeded the number of purchases. As it follows from the report of CFTC (Commodity Futures Trading Commission), at the end of last week, the level of transactions of pure speculative nature based on the precious metal fell from 97.3 thousand to 65.7 thousand. The balance between buyers and sellers has not changed much, as the advantage is still for the bears among the swap-dealers, amounting to 150,801 ths to the bullish 96,613 ths, That makes 10 times growth against the previous week, while sellers reduced positions by 21.070 thousand, 4 times more than the previous week.Resistance levels: 1640.00, 1653.92, 1675.00, 1688.58.Support levels: 1620.00, 1600.00, 1579.25, 1562.70.Brent Crude OilThe quotations of the benchmark Brent crude oil have consolidated below the level of 84.00.The dynamics of the raw material is influenced by the prolonged release of crude oil from the U.S. strategic reserves. According to The Wall Street Journal, only last week the reserves were reduced to their lowest level of 1984, amounting to 427.0 million barrels, thereby giving way to the commercial reserves held by the American firms, thereby increasing fears among analysts, since the embargo on oil imports from Russia to the euro zone countries will take effect on December 5. According to preliminary data the world market of the raw materials may lose up to 1.0 mln barrels per day, which will create a strong impulse for the price growth, which will have nothing to compensate for.Resistance levels: 85.50, 92.00.Support levels: 82.40, 76.80. More about Brent tradingIf you are interested in Brent analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest Brent forecasts and signals contain support and resistance levels, as well as stop-loss ...
Forex analytical forecast for today, September 21, for EURUSD, USDJPY, Gold & WTI
EUR/USD, currency, USD/JPY, currency, WTI Crude Oil, commodities, Gold, mineral, Forex analytical forecast for today, September 21, for EURUSD, USDJPY, Gold & WTI EUR/USD: the European currency is waiting for the outcome of the US Federal ReserveThe euro is trending in different directions, testing 0.9950. Market participants are refraining from new trades, taking a wait-and-see attitude, wanting to assess the outcome of the U.S. Federal Reserve meeting minutes. Earlier the European currency had been keeping the downward trend, which caused the instrument to fall below the support at 1.0000.An unclear outlook in the European region put moderate pressure on the EUR/USD currency pair, while the governments are regularly approving strong measures to combat rising prices. Thus, according to ECB (European Central Bank) head Christine Lagarde, as part of the fight against rising inflation is likely to increase the key indicator to the level at which economic growth will be stopped. For the record, the EU's marginal recorded inflation rate has surpassed the 9.0% target and will not be able to decrease in the short term.Resistance levels: 1.0000, 1.0050, 1.0100, 1.0150.Support levels: 0.9950, 0.9900, 0.9850, 0.9800.USD/JPY: The 'American' is trying to overcome the 144.00 levelThe American currency has been trading weakly higher within the framework of the unstable "bullish" trend for the third session in a row. USD/JPY reached the level of 144.00, having a prospect for further growth, being in expectation of the key positive signal - toughening of the monetary policy by the national regulator. For the record, the final minutes of the two-day meeting of the US Federal Reserve and the following press-conference of the officials were announced for today. According to preliminary estimates, the key value will be increased by 0.75%; moreover, the officials may signal the necessity to continue raising the borrowing cost. Some experts allow the index to grow by 1.00% at once, however under the current circumstances, the probability rate of such an outcome does not exceed 17%.Resistance levels: 144.00, 145.00, 146.00, 147.00.Support levels: 142.54, 141.50, 140.78, 139.67.Gold PricesThe precious metal is trading flat, testing the level of 1664.0.Experts note that the demand for contracts on gold has been declining recently. As follows from data publication by CFTC (Commodity Futures Trading Commission), sellers promptly closed contracts during the previous week against increase in positions from buyers. Swap dealers, which react quite actively to market changes, among buyers increased the number of positions by 0.535 thousand contracts, and sellers decreased by 4.059 thousand deals. Particularly, the general trend shows the reduction of contracts for three weeks in a row, at this stage it is from 103.9 thousand to 97.3 thousand.Support levels: 1650.0, 1610.0.Resistance levels: 1680.0, 1730.0.Oil prices"Black gold" of WTI grade is moving within the medium-term downward dynamics, but managed to stabilize between the indicators 83.00-87.00.During the trading session on Wednesday, global markets are vulnerable and are influenced by a number of contrary factors. Thus, the participants of the trades expect the results of the US Federal Reserve's two-day monetary policy summit to be announced today, in which the key indicator correction might reach 0.75% or even 100 basis points at once, which would strengthen the US dollar against the main alternative competitors, not excluding the commodities segment. Also, the dominance of hawks in the agencies may lead to a more aggressive strategy of monetary policy tightening in the United States and the euro area countries, after which the risk of recession and decline in demand for raw materials will increase significantly. The asset is supported by oil shortage in the markets with the probability of further aggravation. According to the latest information of the cartel OPEC +, 3.58 million barrels less "black gold" per day are produced in accordance with the production plan, which amounts to 3.5% of global consumption. This situation was made possible due to production sagging and economic constraints reducing oil production in Russia.Resistance levels: 87.50, 95.45, 100.00.Support levels: 81.25, 78.00, 75.00. If you are interested in Gold analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest XAU/USD forecasts and signals contain support and resistance levels, as well as stop-loss ...

Articles about financial markets

Weekly review. January 10, 2022
EUR/USD, currency, US Dollar Index, index, Brent Crude Oil, commodities, Gold, mineral, Weekly review. January 10, 2022 The year 2022 on world markets will largely be determined by the tightening of monetary policy in the United States, and the first week of the new year confirmed this. The minutes of the Fed's December meeting published last week showed a significant tightening of the position of the regulator's representatives – Fed members believe that the rate can be raised as early as March, and also see a faster reduction in the balance sheet as appropriate. Representatives of the regulator believe that the current economic conditions are already in many ways conducive to tightening the labor market, some even noted the recovery of the labor market already sufficient for such actions, although the majority still expects further improvement in the labor situation. Against this background, it is worth noting the publication of December labor data in the United States, which came out ambiguous. On the one hand, employment in December increased by only 200 thousand. The Bloomberg consensus forecast assumed an employment growth of 450 thousand, and the actual growth rate of the indicator was the lowest since the beginning of 2021. Nevertheless, in many respects such weak employment growth is explained by seasonal adjustment, and the unemployment rate in December fell more than expected. Thus, the indicator has updated the next lows since the beginning of the pandemic, dropping to 3.90% against the expected 4.10%. The unemployment rate continues to approach a historic low of 3.40%, and labor statistics have further increased fears in the market of an imminent tightening of the PREP in the United States. As a result, on Friday, the yields of ten-year US treasuries at the moment exceeded 1.80% per annum - the maximum since the beginning of the pandemic. Today they have returned to these levels again.This week, the dynamics in the market will continue to be determined by expectations for the actions of regulators - investors will follow the statements of representatives of the Fed and the ECB, as well as the publication of price data in the United States for December. Statistics published last week showed an increase in inflation in the EU to 5.00% YoY. As a result, the topics of price growth in December updated the historical maximum, while analysts expected a slight slowdown in price growth. The situation on the supply side also has high inflation in the United States. The December business activity indices indicated a slight easing of logistical problems, however, the further deterioration of the epidemiological situation again intensified disruptions in logistics chains, which does not lead to a significant slowdown in price growth. The FAO World Food Price index fell in December for the first time since July, but food inflation remains at elevated levels. Against this background, US inflation data is likely to continue to bring the Fed rate hike closer, intensifying the negative in the markets.The main event for the oil market in early 2022 was the OPEC+ meeting. However, as expected, it was decided to stick to the current plan to increase production. Nevertheless, the cartel lowered its forecasts for a surplus in the oil market, which allowed Brent crude futures to exceed the level of $80/bbl. Moreover, against the background of interruptions in the supply of black gold from Kazakhstan and Libya, quotations were close to $83/bbl. However, at the end of the week they declined from these levels, today Brent futures are growing by 0.35% and are trading around $82.05/bbl. The main negative for oil this week may be related to the potential strengthening of the dollar amid expectations of a tightening of the PREP in the United States. However, in the absence of a significant strengthening of the dollar, Brent futures may still exceed the levels of $83/bbl– - the quotes may be supported by another weekly decline in oil ...
Citibank predicts a decline in the price of gold to $1,500 in 2023
Gold, mineral, Citibank predicts a decline in the price of gold to $1,500 in 2023 Experts of the largest US bank Citigroup reported that, according to their estimates, gold in 2023 will cost about $1,500 per troy ounce. They also assumed that the average price of this precious metal in the coming year will be close to $1,685. However, analysts of the American bank expect an increase in the value of gold in this winter period to a range from $1,825 to $1,850 per ounce. However, in the future, the value of gold will begin to decline. Citigroup is 60% confident in this forecast for the next two years, while there is another version of their forecast, in which experts are 30% confident. And this option provides for an increase in gold prices to $2,100 in the middle of 2022, which can be realized subject to a significant increase in private and public debt. During trading on Tuesday, December 14, gold declined in price by 0.01% to $1,788.15 per ounce. The value of silver decreased by 0.16%, amounting to ...
Forex and Binary Options - which is better?
EUR/USD, currency, Gold, mineral, Forex and Binary Options - which is better? Recently, I see that more and more traders are starting to switch from Forex to binary options. This is understandable, because it is easier to trade binary options, and profitability, of course, is also higher. In general, I myself gave up Forex in favor of binary options 6 years ago. But since the topic is so relevant now, let's figure out which is better – Forex or binary options, comparing the pros and cons of both types of earnings.Forex and binary options: a brief comparisonGet and sign up: profitabilitySo, let's start our comparison with such an important point as profitability. When trading binary options, the profit ranges from 75 to 95% of the invested investments. In Forex, the profit is unlimited. However, in order to get a high percentage of earnings on Forex, you will have to correctly predict large price fluctuations, whereas only 1 point is enough on binary options. I think there is no need to explain that binary options trading is more profitable in the long run.Read more: What are binary options?Is risk a noble cause? What is the difference between Forex and binary options?The next difference between binary options and forex is the risks themselves. Forex trading involves constant manual work with risks due to the correct placement of orders for opening and closing transactions (stop losses and take profits). On the one hand, this is convenient, since it is always possible to rearrange orders and wait for the very moment when it will be possible to make a profit or breakeven… But on the other hand, as a rule, a Forex trader needs to have an impressive deposit in order to withstand long drawdowns. In addition, the trader is constantly experiencing psychological pressure (whether he closed the deal on time, whether he placed orders correctly, etc.). It is also important to say that traders who do not have large deposits are forced to use the broker's leverage, which multiplies not only the profits received, but also, of course, losses.Binary options brokers relieve traders of psychological responsibility for placing orders. It is enough for a trader to decide on:the size of the bet (as a rule, its size ranges from $5 to $25),the end time of the transaction.Thus, all work with risks consists in trading with a minimum percentage of the deposit. So, in fact, Forex differs from binary options only by a risk management system. It is not enough for a forex trader to open a deal in the right direction, he also needs to calculate how many points the chart will pass and where to put a stop loss / take profit correctly.Read more: What is Forex in simple wordsAnalysis is the mainThe same tools are used for analysis and forecasting in both types of trading: indicators, news, volumes, price patterns, etc. It turns out that, other things being equal, it is easier to do analysis for binary options, since it is enough to correctly predict only the direction of the price. In Forex, in addition to the direction, as I wrote above, you need to determine the approximate number of points in order to correctly place orders to close transactions.Time is moneyThis point can be interpreted in two ways. For someone, it is important how much time trading takes in total, for someone this moment is not fundamental. In any case, it is clear that Forex takes much more time than binary options. After all, you need to constantly work with orders to influence the outcome of the transaction.Number of assetsThe most popular assets on binary options and Forex are currency pairs and precious metals (in particular, EUR/USD and Gold). However, if the choice is limited for a Forex trader, then a binary options trader has alternative options. This:stocks,indexes,futures,the so-called "pairs" (the ratio of shares of one company to shares of another, for example: google/apple).Thus, a larger number of potentially profitable trades will be available to you on binary options.Read more: What is a spread in trading Forex and stocksOnce again about money: commissions and spreadsActually, the difference between Forex and binary options is also the trading conditions themselves. Forex traders must necessarily pay the broker the spread from each open transaction.  What is a spread? The spread is the difference between the purchase price of an asset (bid) and the sale price of an asset (ask) (roughly speaking, the same difference can be seen at any currency exchange point). At the same time, traders do not pay any commissions to the binary options broker, either from investments or profits.Lend a shoulder to a friend: leverageA very important point, in my opinion. Applies only to Forex, but nevertheless it is important to pronounce it. The minimum lot (financial contract) on Forex is $100,000. Naturally, an ordinary person cannot start trading with such amounts. In this regard, the Forex broker is ready to provide its clients with leverage. For example, with a deposit of $1,000, the broker is ready to "add" $99,000 to the trader so that he can enter the market. However, the broker will not risk his money, instead he will limit the maximum amount of losses on the account to 1% (the same $ 1000). What does this lead to? To the fact that traders often start trading large lots and quickly lose money.What to choose, forex or binary options?So, binary options or still Forex? My answer to this question will not be objective, because I made my choice a long time ago. For those who have not yet decided, I can give one piece of advice – decide for yourself which type of trading is most suitable for you. It is difficult to predict in advance which method or strategy will bring the greatest profit, but one thing I can say for sure - binary options today provide the lowest entry barriers to the world of trading, making it simple and accessible to everyone. And a large number of binary options brokers allows everyone to find the most convenient platform for themselves. By the way, some brokers have forex simulators built into the platform.Well, I suggest that all novice traders read the article about the main mistakes that beginners make in trading.Read more: Forex or Binary Options? The difference between Binary Options and ...
Why is Gold declining and what will be the value at the end of 2021
Gold, mineral, Why is Gold declining and what will be the value at the end of 2021 At the height of the 2020 crisis caused by COVID-19, the price of gold soared to a record $2,073 per ounceAt that time, some experts predicted a further increase in gold to $2300-2500 per ounce, as bidders sought to protect their capital from a sharp market collapse and growing uncertainty.But in the fall of 2020, the market situation changed dramatically. Active vaccination of the population against COVID-19, gradual adaptation to new working conditions and the subsequent recovery of the world economy have significantly weakened interest in gold and other protective assets.In 2021, the news background for gold remains mostly negative. The main attention of the market was focused on the further actions of the Fed. Large-scale measures to stimulate the economy have significantly increased inflationary risks, due to which the profitability of long-term American treasuries has increased sharply. From January to March 2021, the yield on 10-year government bonds rose from 0.95 to 1.70%. Over the same period of time, the dollar index strengthened by about 4.5%. Gold has lost its investment attractiveness, as the strong dollar has made the precious metal more expensive and active against the background of the increased guaranteed yield of American debt securities.Read more: What is the US Dollar Index DXY and how to trade it?From April to May, the pressure on the precious metal eased somewhat. In just two months, gold quotes showed an impressive growth of more than 13.5%, but, as subsequent events showed, it was the death agony of the bulls, who obviously lost their strategic initiative.The market is growing expectations that the world's leading central banks, primarily the Federal Reserve, will begin to gradually curtail incentives, which will help strengthen the dollar and limit inflation risks. It is obvious that in these conditions, the potential for a recovery in the value of gold will be very limited.Of course, the continuing risks of the emergence of new COVID-19 strains and local pullbacks on stock markets can lead to a short-term increase in the value of gold. But a return to the highs of mid-2020 in the medium term is hardly worth counting on. Although the volatility of gold will remain very high and gold will still be the most popular instrument for trading.Despite the slower than previously expected pace of recovery of the labor market in the United States, representatives of the Fed are increasingly making statements about the need to curtail incentives. The latest comments from the Fed representatives suggest that the regulator may begin the process of reducing stimulus measures this year, which may support the US dollar. Gold, which has a close inverse correlation with the dollar, will obviously be under pressure.The hopes that the demand for precious metals will be supported by high inflation risks are not yet confirmed by the real situation on the market. Since the beginning of the year, inflation in the US, the EU and other regions has risen to multi-year highs, while the price of gold has declined since the beginning of the year. Therefore, the statement that when inflation increases, investors always buy gold is fundamentally wrong. Traders will be happy to buy stocks, bonds and other high-yield assets if they are sure that they will protect them from risk better than precious metals.Read more: Causes of inflation and scientific approaches to their studyWhat is the forecast given by the world banksSociete Generale experts note that locally the market remains bullish amid the weakening of the dollar, but in the future gold may come under pressure. According to the baseline scenario, the average price of gold in 2022 will be $1,750 per ounce. An increase in gold prices is possible only in the event of the beginning of another crisis in the world economy. In this case, the price of gold may rise to the level of $2,160. The third scenario assumes an acceleration of the global economic recovery, which may significantly weaken interest in gold and other protective assets. In this case, the price of gold may fall to the level of $1,600.Analysts also predict a decline in gold prices. They believe that the precious metal will remain under pressure in the coming months, as macroeconomic statistics from the United States will indicate a further economic recovery. The risks associated with the new COVID-19 "Delta" strain may deter the Federal Reserve from earlier curtailing incentives, but gold is unlikely to extract large dividends from this.Bank traders believe that the fair price range for gold is $1735-1845. Now the price is in the middle of this range and the further short-term vector of movement will depend, first of all, on the rhetoric of the Fed. Tougher statements may provoke a new wave of sales.Read more: The history of Federal Reserve (Fed) and its functionsWhat does technical analysis sayOn the weekly chart, we note a false breakdown of the previous historical maximum. The subsequent pullback of the price down indicates the formation of a strong reversal formation, within which we can see a price decline to the area of 1500.00. For this, the bears need to push through support at the level of 1690.00.Therefore, as long as the price remains below the 1900.00 mark, the prospects for a long-term movement of gold remain bearish.XAUUSD, 1WOn the daily chart, the picture for the bulls is also not comforting. The price is currently under a strong resistance level of 1835.00. The probability that the bulls will be able to break through this level from the first approach is very insignificant. But even if buyers are able to break through this mark in the future, the growth potential will be limited by the next strong resistance at 1900.00.Read more: What timeframe is it best to trade onThe base scenario assumes the development of a moderate downward movement in the direction of support at 1685.00. At the same time, in the range of 1685.00–1835.00, the price can be held for quite a long time.XAUUSD, DailyThe medium-term scenario of price movement also indicates the development of a downward movement. On H4, buyers are still unable to cope with the resistance even at the level of 1800.00. Therefore, while the price is kept below this mark, the bearish scenario of movement with a target of 1732.00 remains a priority.XAUUSD, 4HYou can count on the growth of quotations only after the price is fixed above 1800.00. In this case, the potential for the development of an ascending wave will be limited to the level of 1835.00Read more: How to trade on the Forex ...
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