Is Gold Forming a Bottom, or a Bear Flag?
Updated
At the time of publishing this report gold is trading at around $1220(our entry price) whereas white metal is Trading lower at $14.16 which implies that our position in silver is already running in profits and we believe it' going to hit the target very soon along with the sharp downside fall in yellow metal prices.
we witnessed a sharp downside fall in silver and moderate fall in gold prices as The U.S. dollar hit a new daily high while crude oil prices broke below further and reached a fresh daily low. Oil prices dropped below $50 a barrel Today. we already informed you that falling prices in oil is deflationary and most analysts try to predict the upcoming cycle of inflation or deflation based upon the current oil prices Trend, however, weak oil prices mean inflation expectations will remain low-.U.S. President Trump and Chinese President Xi are scheduled to meet face-to-face in Argentina This Saturday-
The important thing to understand here is that the U.S CHINA Trade war is very bearish for the gold and silver and as Trump has already made negative comments on this matter on Monday market is not expecting any improvement in the situation-the U.S CHINA Trade war is also a factor which is contributing to The U.S dollar bullish movement, However, any easing in the ongoing trade war will shoot up the prices of gold and silver-
we need to see the fed cutting or pausing the interest rates hike which will ultimately drive the precious metals prices higher but as we already know fed rate hike seems not to stop very soon-Markets are expecting fed to raise rates in December and two another rates hikes next year, however, this expectation has been cut in half as previously market expectation was four rate hikes in the next year,Negative sentiment can also be seen in futures markets as bearish speculative positioning continues to dominate the precious metals
Technicals-Our two position are in gold and silver and silver position is already running in profit, however, we believe buyers should be very cautious at this point as we believe 1200 level will be easily broken and there is not much support until 1180. Gold -0.73% -0.07% -0.37% 0.17% 0.69% likely will not be able to support around its psychological level if the U.S Dollar keeps rising and there are numerous factors which are suggesting the future dollar strenth-The declined started in Asia-pacific trade after it went below the 100 days moving average at last week
overall it seems that position in gold -0.73% -0.07% -0.37% 0.17% 0.69% and silver -0.14% -0.14% -0.35% 0.49% 0.57% will be highly profitable in coming weeks-we are very bearish for the precious metal sector and we think the downfall has just been started.
existing positions
Currency Pair: XAUUSD -0.61% ( Gold -0.74% )
Sell Stop Entry Price:1220
Take Profit: 1180
Stop Loss:1240
Capital Risk:2000USD(amount may vary depending on your account size and risk tolerance)
Potential Reward: 4000USD
Risk/Reward: 1:2
(we can adjust (limit, close or even reverse) the position before this price level is reached)
Should you require any more information don't hesitate to contact us.
Many regards,
Short term Trades
Currency Pair: XAG -0.83% .USD( silver -0.21% )
Sell Entry Price: 14.500
Take Profit: 14.000
Stop Loss: 15.00
Capital Risk: 2000USD-(amount may vary depending on your account size and risk tolerance)
Potential Reward: 2000USD
Risk/Reward: 1:1
(we can adjust (limit, close or even reverse) the position before this price level is reached)
we witnessed a sharp downside fall in silver and moderate fall in gold prices as The U.S. dollar hit a new daily high while crude oil prices broke below further and reached a fresh daily low. Oil prices dropped below $50 a barrel Today. we already informed you that falling prices in oil is deflationary and most analysts try to predict the upcoming cycle of inflation or deflation based upon the current oil prices Trend, however, weak oil prices mean inflation expectations will remain low-.U.S. President Trump and Chinese President Xi are scheduled to meet face-to-face in Argentina This Saturday-
The important thing to understand here is that the U.S CHINA Trade war is very bearish for the gold and silver and as Trump has already made negative comments on this matter on Monday market is not expecting any improvement in the situation-the U.S CHINA Trade war is also a factor which is contributing to The U.S dollar bullish movement, However, any easing in the ongoing trade war will shoot up the prices of gold and silver-
we need to see the fed cutting or pausing the interest rates hike which will ultimately drive the precious metals prices higher but as we already know fed rate hike seems not to stop very soon-Markets are expecting fed to raise rates in December and two another rates hikes next year, however, this expectation has been cut in half as previously market expectation was four rate hikes in the next year,Negative sentiment can also be seen in futures markets as bearish speculative positioning continues to dominate the precious metals
Technicals-Our two position are in gold and silver and silver position is already running in profit, however, we believe buyers should be very cautious at this point as we believe 1200 level will be easily broken and there is not much support until 1180. Gold -0.73% -0.07% -0.37% 0.17% 0.69% likely will not be able to support around its psychological level if the U.S Dollar keeps rising and there are numerous factors which are suggesting the future dollar strenth-The declined started in Asia-pacific trade after it went below the 100 days moving average at last week
overall it seems that position in gold -0.73% -0.07% -0.37% 0.17% 0.69% and silver -0.14% -0.14% -0.35% 0.49% 0.57% will be highly profitable in coming weeks-we are very bearish for the precious metal sector and we think the downfall has just been started.
existing positions
Currency Pair: XAUUSD -0.61% ( Gold -0.74% )
Sell Stop Entry Price:1220
Take Profit: 1180
Stop Loss:1240
Capital Risk:2000USD(amount may vary depending on your account size and risk tolerance)
Potential Reward: 4000USD
Risk/Reward: 1:2
(we can adjust (limit, close or even reverse) the position before this price level is reached)
Should you require any more information don't hesitate to contact us.
Many regards,
Short term Trades
Currency Pair: XAG -0.83% .USD( silver -0.21% )
Sell Entry Price: 14.500
Take Profit: 14.000
Stop Loss: 15.00
Capital Risk: 2000USD-(amount may vary depending on your account size and risk tolerance)
Potential Reward: 2000USD
Risk/Reward: 1:1
(we can adjust (limit, close or even reverse) the position before this price level is reached)
Note
Update -Those who entered silver trade at $14.500 can set there target area at 14.00 or can even close the position in profit-however if your entry was at 14.40 or lower we advise you to keep our position intact with the same target area and stop level-
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.