Our free forex signals service today looks at the gold and we have the entry, stop and take profits levels for you.
The demand for gold was stable during the first half of the trading sessions in Europe, despite no subsequent purchases. Gold is currently trading a bit above the $1,791 level, and a reevaluation of how the Fed will carry out its plan has pushed the dollar further from multi-month highs hit on Friday. Dollar-denominated commodities, including gold, rose moderately due to this factor.
Speculators have lowered their expectations that the Fed will cut bond purchases before the end of the year due to concerns that more COVID-19 cases will slow global growth. In turn, this led to some profit-taking in US dollars, although the generally positive mood in equity markets limited the gains.
Another factor preventing traders from placing aggressive bets on the non-yielding yellow metal was the sharp jump in US Treasury yields, which fueled risk appetite in the markets.
Also, this week, investors withdrew before Fed Chairman Jerome Powell speaks at a symposium in Jackson Hole. Gold is expected to gain momentum after Powell’s comments on the policy will be scrutinized for clues about the Fed’s outlook.
A subsequent strong buying move in the dollar would limit XAU/USD gains even further, so it would be wise to wait for a new upside move to start before preparing for it.
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Gold free forex signals
Instrument: GOLD (XAU/USD)
Order Type: BUY STOP
Entry price: 1,796.29
Stop Loss: 1,768.84
TP1: 1,823.74
Our Risk Setting: 1%
Risk / Reward Ratio: 1:1
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Saqib Iqbal
