Recommendation for the week gold against the dollar
The risk is 0.35%. Last week’s long trade was triggered, and the stop loss was hit
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Best buy entry points
Entering a buy transaction with a pending order from 1840 levels. The best points to place a stop loss close below 1810 levels. Move the stop loss to the entry area and continue to profit with the price moving by 12 dollars. Close half of the contracts with a profit equal to 15 dollars and leave the rest of the contracts until levels The strong resistance is at 1980.
Best selling entry points
Entering a sale deal with a pending order from 1900 levels. The best point points for placing a stop loss, closing the highest levels of 1920. Move the stop loss to the entry area and continue to profit with the price moving by 12 dollars. Close half of the contracts with a profit equal to 15 points and leave the rest of the contracts until support levels 1840.
Prices fell gold During the entire trading week of the past week, after the pessimistic expectations regarding the monetary policy rose after the publication of the minutes of the Federal Reserve’s meeting of last July, which was characterized by tightening, as most monetary policy makers see an increase in “uncertainty”, which requires additional tightening. During a meeting of the Monetary Policy Committee last July, officials revealed the continuation of inflation risks, which they described as still holding in an “upward trend.” Keeping in mind that the current inflation rate is far from the Fed’s target of 2 percent, in addition, the flexible labor market adds some additional pressures around demand.
Although Monetary policy makers said that the current indicators show a kind of gradual slowdown surrounding economic activity. In the same meeting, some officials expressed concern about “the cumulative effects on the economy as a result of tightening monetary policy over the past months, which may reflect negatively on certain sectors such as the banking sector.” During the meeting, all members voted to raise the target range for the interest rate amid warnings that it would lead to “a sharper slowdown in the economy than expected”.
Gold responded negatively to the Fed’s minutes, as the precious metal fell to its lowest level in about five months, amid expectations of continuing monetary tightening.
On the technical side, Gold price closed in red during last week’s trading. Gold traded within a falling wedge pattern on the 240-minute time frame, shown on the chart. In the event that the price of gold declines, it may target the strong support levels that are concentrated at 1875 and 1855, respectively. On the other hand, if the price rises, it may target the resistance levels that are concentrated at 1924 and 1944, respectively. At the same time, the price is trading below the moving averages 50, 100, and 200 on the daily time frame as well as on the four-hour time frame, respectively, in a sign of the general bearish trend recorded by the price in the medium term. We expect gold to decline as long as it settles within the falling wedge pattern, even if it witnesses some bullish correction. Please maintain capital management and enter into a buying and selling transaction according to the daily developments of gold news that we will note on a daily basis.
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2023-08-20 09:24:40
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