A1 Trading Company

June 14, 2021

XAU- Deep Dive Market Analysis (6/14/2021)

Frank Cabibi

Market of the week:

Recent sell pressure has taken this precious metal down on inflation news that came out last week. It looks like investors don't know what to think about the market right now as inflation is said that levels will remain the same and interest rates will remain unchanged.

Fundamental Analysis

Inflation:

A week dollar means a strong equities market and a higher price of gold; however, the expectation of a flattening inflation curve sounds like good news for the USD which could spell upside for the dollar as demand rises. We believe this to be short term bullish sentiment on the dollar since these are only expectations regarding future inflation, and that the economy is performing increasingly well. Since USD is mainly used as a safe-haven currency, a bustling economy is not ideal for dollar bulls, but stock bulls.

COT:

Last week's COT numbers showed a slow in purchasing the dollar asset and was actually a decrease in long positions. Long positions on gold have remained flat for the past three weeks, but this recent dip and rise in the price of gold could be from big money selling a lot of contracts.

Technical Analysis

XAUUSD 4H

A false breakout lead to an immense sell-off on the gold chart above. Gold came down and touched underneath its 200 SMA on the 4H timeframe to hit support around $1,845 before bouncing hard to the upside. Heavy resistance sits above where price made a double top around $1,900. Price may consolidate around its 200 SMA for the time being until sentiment starts swinging one way or the other.

A1 Edgefinder

All-In-One Fundamental Dashboard!
Simplify your fundamental analysis with our all-in-one fundamental dashboard! 
Discount code: READER

Learn more

My Crazy Trade On Gold: Up $8000

Hey Traders! This week has been wild for Gold! Thanks to insights from the EdgeFinder, I've been in a trade on XAUUSD since May 3rd. Initially, I jumped in due to weak jobs and PMI data, sticky inflation, and solid support/market structure. Here’s a quick look at my gold trade: Entry Recap: On May 13th, […]

Read More
Is Gold the Buy of 2024?

Rates move lower after the BoE announced their latest monetary policy report to keep rates unchanged at 5.25%. Unemployment came in higher this morning with the 30-year bond auction coming up Thursday afternoon. In the midst of a slow news week in the US, gold is sitting at a very favorable position according to the […]

Read More
Yields Fall Ahead of Earnings

More earnings reports come out this week is causing an inflow of buyers in the equities market while yields begin the week on a decline. Last week's Fed meeting showed up as "less hawkish" than investors expected causing risk appetite to increase at the start of the summer months. EdgeFinder Analysis As we come off […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonemenucross-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram