Saturday, March 7, 2020
The relations between Uncertainty and Gold.
During the 2020 coronavirus pandemic, we saw where gold reached record highs. This is, as a result, of investors rushing to safe havens, due to times of extreme uncertainty. Uncertainty can be defined as any period in time where there is an undefined outcome.
Gold did similar movements when US drone strike killed prominent Iranian General, Qassem Soleimani. Shortly after that incident, gold Spike, even more, when Iran responded by launching on airstrike on the US base in Iraq. However, we saw where gold did a slight decline when the Trump Administration decided not to retaliate.
Gold is expected to reach even greater levels, as the Coronavirus spreads at a rapid rate, greatly affecting supply chains and global stock markets.
Saturday, February 29, 2020
Why did gold took a major dip on Friday? Get ready for major rise!
On Friday we saw where gold depreciated approximately 5%. This came at a surprise to most Fundamental Traders as gold is seen as the best investment, in times of uncertainty. But why did Gold decline on Friday? One simple explanation is Margin Call.
What is Margin Call? According to Investopedia; a margin call occurs when the value of an Investor's Margin Account, in other words; an account that contains securities bought with borrowed money, falls below the broker’s required account. A margin call is the broker's demand that on investor deposit additional money or securities so that the account is brought up to the minimum value, known as maintenance margin.
This year we have seen where the Coronavirus has significantly impacted the economy in China and around the world. In this time of uncertainty, we have seen where investors generated the majority of profits from gold. What we witnessed on Friday, is investors selling anything with bid and running for cover and that includes typical hedges such as gold. This is the result of investors cashing out profits for Margin Call. Investors showed a similar Behavior during the 2008 financial crisis; however, prices more than doubled from the lows thereafter.
Tuesday, February 5, 2019
Oil rises on tighter supply but US factory data weighs
image from Isaac Urrutia | Reuters
Oil prices rose on Tuesday as investors expect U.S. sanctions on Venezuela and production cuts led by OPEC and its allies.
U.S. factory orders weighed on the market, which caused a significant decline Monday.
However, supply shortage optimism have helped U.S. Crude oil (WTI) to reach highest level in more than two months at $55.75 early Tuesday.
Prepare strategy for WTI is buy on dips.
| Symbol | S3 | S2 | S1 | P | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Oil - US Crude | 54.94 | 55.12 | 55.22 | 55.3 | 55.41 | 55.49 | 55.67 |
Monday, July 9, 2018
Gold Trending Up due to Market Uncertainty
- Gold is trending higher as the dollar weakens during early Asian trading.
- This is due to increase trade tension between US and China
- The United States and China exchanged the first barrages in what could become a prolonged trade war on Friday, slapping tariffs on $34 billion worth of each other’s goods.
Preferred Strategy for Gold: buy on Dips.
Thursday, July 5, 2018
PREFERRED STRATEGY: FOR USD/JPY: US- China Trade War - Brace for IMPACT
Starting at midnight tonight, the US will tax 818 Chinese products — worth a total of $US34 billion.
- Disgruntled China has vowed to retaliate with the same value; 25% per cent tariffs on US products worth $US34 Billion per year, including soybeans, seafood and crude oil.
Preferred Strategy: for USD/ JPY: Open sell positions at 110.65 with TP at 109.50
Friday, June 1, 2018
USD/JPY set to gain above 109.00 handle
USD/JPY is set to move higher to 110.00 if the US wage growth and NPF number exceeds expectation. Meanwhile, the pair could drop below the weekly low of 108.11 if US wage growth and NPF numbers disappoint's.
Thursday, May 31, 2018
Today's : EUR/USD Support and Resistances
EURUSD | S3 : 1.1674 | S2 : 1.1695 | S1: 1.1707 |
EURUSD | R1 1.1729 | R2 1.1737 | R3 1.1758 |