Gold to US Dollar
- By date
- Metadoro first
Gold prices are testing the support at $2010 per troy ounce for the second time this month. This signals its weakness. There is also a technical support of the ascending channel established on November 13, 2023. A breakthrough of this support would weaken gold even more. An escalation of the Middle East conflict may push gold prices up, but it would delay a correction of gold prices by 2-3 weeks at most. Otherwise, we may soon see a drop in bullion prices towards $1920. This is my target for short trades. It is difficult to designate an entry point so far. I plan to open a short position on the retest of the $2010 support level. A stop-loss order is set high – above $2100 per ounce.
Gold to US Dollar
- It is traditionally considered as a safe haven asset, which is in demand when market uncertainty and risks are rising. Geopolitical tensions, economic turbulence, and high inflation usually contributes to rising gold prices;
- Gold prices usually move in the opposite direction to the U.S. Dollar vs other currencies. This is not only because gold prices are measured in U.S. Dollars, but also because it derives from the comparison of the yields of safe haven Dollar-denominated assets like U.S. Treasuries that have regular coupons and Gold itself that has no extra paid interest. So, a rising Dollar and Dollar-denominated assets result in lower demand for Gold, dumping its price;
- The demand for precious metal and its use in production purposes also affect gold prices. For example, central banks may have extra demand for gold because they want to store it into their Forex and Gold reserves. Jewelers can contribute to elevated demand too;
- Gold prices could become extremely volatile during trading in a very short period of time. This volatility usually exceeds currencies, commodities, and stocks by far. It may result in a large profit, but it also has large risks while trading.
Traders must be cautious when trading gold. It is better to trade with low volumes. Experience in trading is vital to exercise gold trading.
|Short Swap (%)
|Long Swap (%)
|Minimum transaction volume
|Maximum transaction volume
|Max Leverage Applied