Recommendation of the week: Gold against the dollar
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Best buy entry points
- Entering a buy trade with a pending order from 2006 levels.
- The best pips to place a stop loss are closing below 1982 levels.
- Move the stop loss to the entry zone and follow the profit as the price moves $12.
- Close half of the contracts with a profit equal to $15 and leave the rest of the contracts until the strong resistance levels at 2030.
Best selling entry points
- Entering a sell trade with a pending order from 2031 levels.
- The best point to place a stop loss is to close the 2055 highs.
- Move the stop loss to the entry zone and follow the profit as the price moves $12.
- Close half of the contracts with a profit equal to 15 points and leave the rest of the contracts until the 2006 support levels.
The price of gold declined during last week’s trading for the second week in a row, as pressure on gold continued after a series of important data that is expected to have an impact on gold’s expectations next week. After these data showed the relative control of inflation at the same time, the possibility of achieving what is known as a smooth decline for the American economy. Personal spending in the United States rose 0.7% in December of last year, the Bureau of Economic Analysis reported. During the same period, personal income increased by 0.3%. The PCE Price Index and Core PCE Price Index saw a rise of 0.2% compared to November, with the core index increasing by 2.9% year-on-year.
In other data, US GDP in the fourth quarter of 2023 rose 3.3%, down slightly from the previous quarter’s 4.9% expansion but exceeding analysts’ expectations. The growth is due to increases in consumer spending, exports, government spending, investment and fixed residential investment. The PCE price index rose 1.7%, in contrast to the 2.6% increase in the third quarter, while the core PCE price index remained flat at 2.0%.
During the next week, investors are awaiting the decision of the Federal Open Market Committee regarding the US interest rate decision, which is expected to be fixed during this month, although the focus will be on the Federal Reserve statement and the subsequent press conference on the issuance of the interest rate decision in an attempt to state the course of monetary policy more clearly.
On the technical level, the price of gold recorded a decline during last week’s trading, as it settled below a downward trend line on today’s time frame shown in the chart. If the price of gold declines, it may target the strong support levels concentrated at 2005 and 1982, respectively. On the other hand, if the price rises, it may target the resistance levels concentrated at 2030 and 2055, respectively. At the same time, the price is trading around the 50 and 200 moving averages on the daily time frame, while the price fell below these averages on the 4-hour time frame, indicating a bearish shift in gold. We expect the price to decline as long as it settles below the trend line shown. Please maintain capital management and enter into a buy and sell deal according to the daily forecast for the price of gold, which we will report on a daily basis.
The chart was produced by the platform TradingView
2024-01-28 10:04:06
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