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Will there be a Gold sell off?

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Will there be a Gold sell off?

The whole eyes of the market is currently on Gold. And why is that? Because Gold is currently at an all-time high.

The current spike in the price of Gold has attracted many people and because of its recent rapid growth – investors and also people who have never invested before. A situation that could be potentially be very dangerous for both of those groups.

 Gold is currently at a critical area now. It is almost at the $2.000 mark. This could work as a strong resistance based on a psychological standpoint, as prices could be rejected at that point.
The last time the market experienced a similar scenario was in 2008 and 2014 when the price reacted to $1.000 mark.

We are not exactly saying that prices will reverse now because it is at $2.000, but the possibility that it could reverse should be taken seriously.

Potential trading advice: it is advisable for traders to stay off the market and let the scenario play out.


As prices has breached historical highs, it is very important that the price manages to stay there. The risks are that even though the price has made the breakout, if the higher prices are not accepted as “fair value prices” then prices could break and fall sharply down.

Trading strategies.

  1. We could wait till higher prices got accepted – which means that price started to rotate above the $2.000 mark. Before entering the market.
  2. Wait till prices drop to buy cheaper.

 How deep do prices need to drop in order to enter the market?

The best place to jump in a long trade is around 1710 mark.

And why is that?

Because If you use a volume indicator and look at how the volumes were distributed throughout the last couple of months, then you will see that a lot of trading positions got placed around the 1710 area. In those areas, buyers were entering their long positions slowly. The big institutions were getting ready for a big push.

When they slowly accumulated their long positions, they started an aggressive buying activity. This activity snowballed, with traders starting to join in the new buying, and the price started to rise sharply.

Now, if prices drops back into the 1710 zone again, it is possible that big institutions will become active again. This zone is particularly important because a lot of positions were taken there.

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Forex Trading

Gold Prices Up Within a Rising Channel

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Gold prices checked time in the course of recent hours, stopping the forceful ascent seen recently. The counter fiat yellow metal will in general contrarily follow the US Dollar and Treasury yields. The Greenback evened out after misfortunes on Wednesday. US government security yields stayed discouraged towards the more extended development range. Front-end rates were somewhat higher. 

Hawkish Federal Reserve financial approach assumptions have been to some degree evening out off since recently. More than one rate climb before the following year’s over has now been priced in, yet the chances of a subsequent one quit rising. This has likely been offering XAU/USD some breathing space of late. The non-interest-bearing resource will in general perform inadequately when returns on fixed-pay resources increment. 

Over the excess 24 hours, gold will be intently peering toward US retail deals and University of Michigan opinion information. 

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Forex Trading

Euro Leaps as US Dollar Held Down by Treasury Yields.

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The Euro made strides against the US Dollar in the outcome of the US CPI numbers and FOMC minutes. US yields dropping lower pulled USD down against most resources. The US yield bend had a bear leveling with the short secured to approach zero rates. 

In the end US values at first auctions off after the information yet recuperated as the market processed the ramifications for the Fed to be close to nothing. Asian values took their lead from Wall Street and didn’t do a lot, with the exception of the Japanese Nikkei 225 list that was up more than 1.6% at one phase. 

The Yen is one of a handful of the resources for debilitate against the USD today. 

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Forex Trading

Crude oil prices stalling after surging to seven-year highs

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Crude Oil costs might pull back having stopped to process gains at 7-year highs close the $82/bbl figure. Everyone is focused on September’s US CPI information just as minutes from last month’s FOMC meeting. Brokers will look to the results to impact the way of Fed strategy assumptions.

Swelling is relied upon to enlist at 5.3 percent on-year, unaltered from the earlier month. The center rate stripping out unstable things like food and energy is made tentative arranges for at 4%, in like manner unaltered. Driving PMI information hails the chance of a humble cooling.Nevertheless, generally value development is relied upon to remain raised. 

In the mean time, FOMC minutes are probably going to repeat the hawkish tone of the approach declaration itself. While the national bank picked to keep down on officially declaring when tightening QE resource buys will begin, its figure for the way of the objective Fed Funds rate turned perceptibly more hawkish. 

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