GOLD XAUUSD and Gold futures have been rallying for weeks and months, providing buy opportunities. The attached GOLD chart below represents the weekly timeframe, a longer-term analysis with each candlestick representing a week’s time.
There is a very strong weekly imbalance located at #1, much lower, around 1.478. Still, it seems that the price is not retracing that strong imbalance and will be rallying further given the price action we can see on the Gold weekly timeframe. We are expecting W highs at #2, around 1.612, to be eliminated. We can see a strong impulse being created around 1.583.
There is a clear bullish bias on the weekly timeframe. The odds are with longs and not shorts.
You can use this longer-term analysis of Gold to buy in smaller timeframes using other strategies; you can use indicators and oscillators if you want. We don’t need them to place a trade using supply and demand imbalances.
What is fundamental analysis telling us about Gold? Well, we don’t need fundamental analysis to place a trade on Gold or Gold Futures, but this is what we can read about its fundamentals…
Gold prices inched up on Wednesday as traders await the U.S. Federal Reserve’s minutes of its latest meeting, which is due later in the day. Gold Futures for April delivery gained 0.2% to $1,607.25 by 1:45 AM ET (05:45 GMT).
Gold gained more than 5% so far this year is now near its highest level since year 2013. Fears of the new coronavirus and its impact on global growth pushed the safe-haven metal higher, while speculation that the Fed might reduce interest rates were also cited as a tail wind.
Well, if you think a virus in China is going to affect the price of gold, go ahead and keep on thinking that 🙂
Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.