Will Gold Hit $3,000 with Fed Rate Cuts and Geopolitical Risks?Gold has outperformed the broader U.S. stock market this year, with analysts predicting further gains as the Federal Reserve nears rate cuts. Gold surged to a new record high of over $2,500 per ounce, and some experts forecast it could reach $3,000 next year. Key drivers include potential Fed easing, geopolitical uncertainties, and increased demand from central banks diversifying away from the U.S. dollar. As interest rates decline, gold’s appeal as a safe-haven asset continues to grow.
Safehaven
Gold: A Strategic Asset in an Uncertain WorldGold's appeal as a safe-haven asset has been reinforced by recent geopolitical tensions. This analysis explores the factors driving gold prices, including geopolitical risks, economic conditions, and the role of gold ETFs.
Gold has proven its resilience as a safe-haven asset during times of uncertainty. Geopolitical tensions, particularly in the Middle East, have fueled demand for gold. While economic factors also influence gold prices, the metal's role as a portfolio diversifier remains compelling. Consider gold ETFs for convenient exposure.
Gold serves as a valuable safe-haven asset, particularly during times of geopolitical instability.
Key Points:
Geopolitical Risks: The article highlights the increasing geopolitical tensions globally and their impact on financial markets. The Middle East, in particular, is identified as a region of significant concern.
Gold as a Hedge: Gold's unique characteristics, such as liquidity, store of value, and diversification benefits, make it an effective hedge against geopolitical risks.
Economic Factors: While geopolitical factors are emphasized, the analysis acknowledges the influence of economic conditions, including interest rates and inflation, on gold prices.
Investment Vehicles: Gold ETFs, like the SPDR Gold Shares ETF (GLD), are presented as convenient options for investors seeking gold exposure.
August-September 2024: Good Looks for New All Time HighIn my associated idea, I predicted that gold would reach $2600 by Christmas 2024. Despite a few small misreads along the way, that prediction looks very much on track to become true. As for what's the expectancy in the interim - I expect Gold to retest 2357, fall back into the pits of the low 2300 range and then to find support for a trip to $2500 by August-September.
Be not brr, nor bll. Just surf.
When you go to buy, don't show your Silver!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈 XAGUSD has been overall bullish, trading within the rising wedge in blue.
Currently, XAGUSD is undergoing a correction phase and it is currently approaching the lower bound of the wedge.
Moreover, it is retesting the previous major high marked in green.
🏹 Thus, the highlighted blue circle is a strong area to look for trend-following buy setups as it is the intersection of the green previous high and lower blue trendline acting as a non-horizontal support.
📚 As per my trading style:
As #SILVER approaches the blue circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...)
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Gold - Getting Ready for the Next Impulse!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈 XAUUSD has been overall bullish, trading within the flat rising channel in blue.
Currently, XAUUSD is undergoing a correction phase and it is currently approaching the lower bound of the channel.
Moreover, it is retesting strong demand zone marked in green.
🏹 Thus, the highlighted blue circle is a strong area to look for trend-following buy setups as it is the intersection of the green demand zone and lower blue trendline acting as a non-horizontal support.
📚 As per my trading style:
As #Gold approaches the blue circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...)
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Gold & ETH - Who Follows Whom?Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
I always keep an eye on Gold to gauge the overall market sentiment.
📚 I found the latest correlation between Gold and ETH interesting !
You know what? I will keep this post short, as the picture is self-explanatory !
The question is... Who follows whom?
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Gold - Kickstarting the Next Impulse!📈Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈 XAUUSD has been overall bullish , trading within the rising channel in blue.
Currently, XAUUSD is undergoing a correction phase and it is currently approaching the lower bound of the channel.
Moreover, it is retesting the previous ATH marked in red.
🏹 Thus, the highlighted blue circle is a strong area to look for trend-following buy setups as it is the intersection of the red previous ATH and lower blue trendline acting as a non-horizontal support.
📚 As per my trading style:
As #Gold approaches the blue circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...)
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Gold - Decision Zone ⚠️⏱Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈 Gold has been overall bullish medium-term (daily) and long-term (monthly) trading within the rising channels and wedge patterns in blue and orange respectively.
Currently, #XAUUSD is hovering within a narrow range marked in red.
Scenarios:
1️⃣ Bullish Continuation
For the bulls to regain full control, a break above the upper bound of the red range is needed.
In this case, a movement towards the $2500 resistance zone would be expected.
2️⃣ Bearish Correction
In parallel, if the lower bound of the red range is broken downward, we expect the bearish correction towards the $2160 demand zone.
Which scenario is more likely to happen first? and why?
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
CHFJPY | MT Short H4 | The Battle of 2 Safe HavensPair: FX:CHFJPY
Timeframe: H4 - Medium Term (MT)
Direction: Short
Technical Confluences for Trade:
- Stochastics are in Overbought Conditions on D1, H4 and H1 time-frames
- Price action may face some resistance from a previous support line
- Price has retraced to 61.8% Fib Retracement Level
- Aiming for the lower Support trendline from the mid of 2023
Fundamental Confluences for Trade:
- SNB has been repeatedly concerned about a strong CHF while BOJ is concerned about a weak JPY
- These levels may see BOJ intervening to stop the Yen weakness and vice versa for SNB
- SNB is the first developed nation to start their cutting rate cycles and BOJ has just started hiking
Suggested Trade:
Entry @ Area of Interest 169.50 - 170.20
SL @ 170.84
TP 1 @ 168.68 (Close Half-Position & move SL to Entry level once TP1 is achieved)
TP 2 @ 167.18
Risk-to-Reward @ Approx. 2.31 (Depending on Entry Level)
May the pips move in our favor! Good luck! :D
*This trade suggestion is provided on an advisory basis. Any trade decisions made based on this suggestion is a personal decision and am not responsible for any losses derived from it.
How Does Recession Affect Financial Markets?How Does Recession Affect Financial Markets?
Recessions, marked by widespread economic decline, profoundly impact financial markets. Understanding how different markets – stock, forex, commodity, and bond – respond to these downturns is crucial for traders and investors. This article delves into the varied effects of recessions, highlighting strategies for navigating these challenging times and identifying potential opportunities for resilience and growth in the face of economic adversity.
Understanding Recessions
A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale retail sales. Economic experts often cite two consecutive quarters of GDP contraction as a technical indicator of a recession. However, it's more than just numbers; it reflects a noticeable slump in economic activities and consumer confidence.
Historically, recessions have been triggered by various factors, such as sudden economic shocks, financial crises, or bursting asset bubbles. For instance, the Global Financial Crisis of 2007-2008 stemmed from the collapse of the housing market bubble in the United States, leading to a worldwide economic downturn.
Recession impacts nearly every corner of the economy, leading to increased unemployment, reduced consumer spending, and overall economic stagnation.
Effects of Recession on Different Financial Markets
A recession's impact on financial markets is multifaceted, influencing everything from stocks and bonds to forex and commodities. However, each market reacts differently. To see how these various asset classes have reacted in past recessions, head over to FXOpen’s free TickTrader platform to access real-time market charts.
General Impact on Markets
During a recession, the financial landscape typically undergoes significant changes. Investors, wary of uncertainty, often reassess their risk tolerance, leading to shifts in asset allocation. Market volatility usually spikes as news and economic indicators sway investor sentiment. This period is often marked by cautious trading and a search for safer investment havens.
Impact on Stock Markets
Stock market performance in a recession can be quite varied. Generally, stock markets are among the first to react to signs of a recession. Prices may fall as investors anticipate lower earnings and weaker economic growth. This decline is not uniform across all sectors, however.
Some industries, like technology or luxury goods, might experience steeper drops due to reduced consumer spending. Conversely, sectors like utilities or consumer staples often include stocks that do well during a recession, as they provide essential services that remain in demand.
Impact on Forex Markets
In forex, recessions often lead to significant currency fluctuations. Investors might flock to so-called safe currencies like the US dollar or Swiss franc, while currencies from countries heavily affected by the recession weaken. Central bank policies, such as interest rate cuts or quantitative easing, play a crucial role in currency valuation during these times.
Impact on Commodities
Commodities can react differently in a recession. While demand for industrial commodities like oil or steel may decline due to reduced industrial activity, precious metals like gold often see increased interest as so-called safe-haven assets.
Impact on Bonds
Bond markets usually experience a surge in demand during recessions, particularly government bonds, seen as low-risk investments. As investors seek stability, bond prices typically rise, and yields fall, reflecting the increased demand and decreased risk appetite.
Types of Stocks That Perform Well During a Recession
During economic downturns, certain stock categories have historically outperformed others. The stocks that go up in a recession generally belong to sectors that provide essential services or goods that remain in demand regardless of the economic climate.
Consumer Staples: Companies in this sector, offering essential products like food, beverages, and household items, may appreciate during a recession. As these are necessities, demand usually remains stable even when discretionary spending declines.
Healthcare: Healthcare stocks often hold steady or grow during recessions. The demand for medical services and products is less sensitive to economic fluctuations, making this sector a potential safe haven for investors.
Utilities: Utility companies typically offer stable dividends and consistent demand. Regardless of economic conditions, consumers need water, gas, and electricity, providing these stocks with a buffer against recessionary pressures.
Discount Retailers: Retailers that offer essential goods at lower prices can see an uptick in business as consumers become more budget-conscious during tough economic times.
Types of Stocks to Hold in a Recession
While there are some stocks that perform well in a recession due to sustained demand for their products, there are other types of stocks that are valued for their financial resilience and potential to provide long-term stability.
Blue-Chip Stocks: These are shares of large, well-established companies known for their financial stability and strong track records. During recessions, their history of enduring tough economic times and providing dividends makes them attractive.
Value Stocks: Stocks that are undervalued compared to their intrinsic worth can be good picks. They often have strong fundamentals and are priced below their perceived true value, with the potential to rebound strongly as the economy recovers.
Non-Cyclical Stocks: These stocks are in industries whose services or products are always needed, like waste management or funeral services. Their demand doesn’t fluctuate significantly with the economy, which may offer stability.
The Role of Government and Central Banks During Recessions
During recessions, governments and central banks play a crucial role in stabilising financial markets.
Government interventions often include fiscal policies like increased spending and tax cuts to stimulate the economy. Central banks may reduce interest rates or implement quantitative easing to increase liquidity in the financial system.
These actions can bolster investor confidence, stabilise markets, and encourage lending and spending. However, their effectiveness can vary based on the recession's severity and the timeliness of the response.
The Bottom Line
Navigating recessions requires understanding their multifaceted impact on financial markets. From stocks and bonds to forex and commodities, each sector reacts uniquely, offering both challenges and opportunities.
To take advantage of the various opportunities a recession presents, opening an FXOpen account can be a strategic step. We provide access to a broad range of markets and trading tools designed to help traders adapt to a shifting economic landscape.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Gold Market Update Exploring Trends Stay ahead in the gold market with our latest analysis! Gold prices are holding strong around $2385, with potential to breach the $2400 mark amidst escalating tensions in the Middle East. Geopolitical uncertainties drive investors towards gold, making it a safe haven asset of choice. Our in-depth analysis delves into market trends, technical indicators, and trading signals to guide you through potential opportunities. Explore the impact of central bank activities and inflation expectations on gold's trajectory. Don't miss out on valuable insights – keep informed with our comprehensive gold market update
GOLD BUY W3 THREATThe gold price can surge to unprecedented highs during periods of heightened tension in the Middle East for several reasons:
Safe-Haven Demand: Gold is often viewed as a safe-haven asset during times of geopolitical uncertainty. When tensions escalate in the Middle East, investors may seek the perceived safety of gold as a store of value. This increased demand can drive up the price of gold.
Risk Aversion: Geopolitical tensions can lead to increased risk aversion among investors. They may become more cautious and seek out assets that are considered less risky, such as gold. The uncertainty surrounding potential conflicts or disruptions in the Middle East can prompt investors to allocate more capital to gold, pushing its price higher.
Supply Disruptions: The Middle East is a significant region for oil production, and any conflict or tension in the area can disrupt the supply of oil to global markets. This can lead to broader concerns about economic stability and inflation, further boosting demand for gold as a hedge against such uncertainties.
Currency Devaluation: Geopolitical tensions can sometimes lead to currency devaluation, especially in countries directly involved or neighboring the conflict zone. Investors may turn to gold as a hedge against currency depreciation, further driving up its price.
Market Sentiment: Geopolitical events can have a significant impact on market sentiment, driving speculative trading in gold futures and other derivatives. As tensions escalate, traders may bet on further increases in gold prices, amplifying the upward movement.
It's important to note that while geopolitical tensions in the Middle East can certainly influence gold prices, other factors such as central bank policies, inflation expectations, and overall market sentiment also play significant roles. Additionally, the actual impact on gold prices may vary depending on the severity and duration of the tensions, as well as other concurrent economic and geopolitical developments.
- ZTrades
Gold will be Slave or Master❗️Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈 After breaking above the $2100 resistance, XAUUSD surged by 5%.
How high can Gold climb?
The marked red circle represents a significant resistance and overbought zone as it marks the intersection of:
1- $2250 round number.
2- Upper red trendline from weekly.
3- Upper blue trendline from daily.
🏹 Thus, the highlighted blue circle denotes a robust area to anticipate a potential reversal.
And keep in mind: the bigger the impulse, the bigger the correction.
Therefore, when Gold begins to trade lower, be prepared!
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Richard Nasr
GOLD - Wait For It ⏱Hello TradingView Family / Fellow Traders,
On Daily: Left Chart
GOLD has been bullish trading within the flat channel in blue and it is currently hovering around the upper bound.
On M30: Right Chart
📈 For the bears to take over, we need a momentum candle close below the last major low highlighted in gray.
📉 Meanwhile, XAUUSD would be bullish short-term and can still trade higher to test the $2100.
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Richard Nasr
Old But Gold 🥇Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈 Gold has been overall bearish, trading within the falling wedge pattern in blue.
At present, XAUUSD is undergoing a correction phase and it is currently approaching the upper blue trendline acting as a non-horizontal resistance.
Moreover, it is retesting a strong resistance zone marked in green.
🏹 Thus, the highlighted blue circle is a strong area to look for sell setups as it is the intersection of the green resistance and upper red trendline.
📚 As per my trading style:
As #XAUUSD approaches the blue circle zone, I will be looking for bearish reversal setups (like a top bottom pattern, trendline break , and so on...)
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
GOLD was hyped?Many analysis came out last year that Gold will shoot up to 2200 since its last pump to 2150 area. But was it hyped for a reason? Or is it really the so-called demand-season?
For me, Gold will forever be looking for a way up due to the following reasons:
- Gold is always a good investment option: physical gold (i.e. gold bars, rings, luxury items) or traded gold
- Semi-con industries requires Gold: microchips, ICs and such devices
- Gold is one of the 'safe-havens' of investment (google it for more details)
Fundamentally, Gold usually has huge demand during year-end as investors tend to convert funds to safe-havens (USD, Gold, Silver, and other commodities). Additionally, US dollar weakens for the final quarter of 2023 (political, military and economic reasons).
However, on the technical perspective, a huge rejection was evident on Dec. 4, suggesting that if a resistance retest will be successful, it might fall deep.
On my personal view, since there are looming news about war, nuclear threats, economic shifting, a possibility of recession, and Gold failing to break the resistance around 2080, I would look for SELL positions targeting 1950 in the short term while waiting for a possibility of a drop down to 1800 mid term.
USD is still the king of safe-havens. Should a war broke-out to multiple countries, currencies and commodities (including Gold) would drop to an unbelievable levels; probably worst than Covid and Ukraine-Russia effect.
XAUUSD - Following The Gold🥇Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst.
📈 Gold has been overall bullish, trading within the rising broadening wedge in blue.
At present, Gold is undergoing a correction phase and it is currently approaching the lower blue trendline acting as a non-horizontal support.
Moreover , it is retesting a strong support zone marked in green.
🏹 Thus, the highlighted purple circle is a strong area to look for buy setups as it is the intersection of the green support and lower blue trendline acting as a non-horizontal support.
📚 As per my trading style:
As #Gold approaches the lower purple circle zone, I will be looking for bullish reversal setups (like a double bottom pattern, trendline break , and so on...)
📚 Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
Bitcoin(BTC/USD) Daily Chart Analysis For Week of Feb 2, 2024Technical Analysis and Outlook:
During this week's trading session, Bitcoin has been experiencing a very tight trading range. Its progress has been obstructed by our Mean Res 43200, which has been causing a significant block jam. However, the market is anticipating a strong push through the Inner Coin Rally 44200, propelling the prices towards Mean Res 47000. This move is expected to be followed by a retest of the completed Outer Coin Rally 47500, which would signify a noteworthy milestone for Bitcoin's upward momentum. In case of a downside, the coin may retest a Mean Sup 42000 before continuing its upward trend.
🔔🏄 Gold Goals Revised: Pending ATH @ $2300-$2700Being one of those instances were a few micro level invalidations reverberates throughout both short-term and long-term analysis, I've adjusted my Gold ( OANDA:XAUUSD ) wavemap a bit. On my last shared idea, I was under the impression that Gold would make a big stretch upwards through the middle range of the $2000s before meeting its next considerable resistance level however, re-checking the count from last year's bottom near $1620 I am led to believe differently. I have cancelled the last idea and shared this one under a new thread due to drastic differences in mid-micro wave expectations.
It seemed that a XAU route to $17xx was off limits but with a likely correction soon to come, $1800 may be the minimally expected correction level, making it very possible that Gold could slip into the $178x-$179x range before finding its ground again. Some believe that a $3K ticket could come for XAUUSD in the years ahead, based on the technicals, I am doubtful of this outcome. Instead, considering the already developed internals of the pink wave structure, $2298-$2442 are very much within the expected range based on common fib levels. To also consider the length of the apparent Wave A move in yellow , if Wave C were to match this length, we could see a maximal price tag near $2696.
The observed RSI divergence should continue to remain tru as commonly seen in Wave 5 (when compared to Wave 3). I suspect that the $2298-$2696 price tag could be reached between 2025 and 2026 though timing is always tricky to accurate gauge. Surf well :)