GOLD TRADING STRATEGY January 14
Updated
Global Gold Prices Decline as USD Hits 2-Year High
The gold market experienced a decline in prices as the US dollar reached its highest level in over two years. The Dow Jones index initially opened with a decrease but later surged over 100 points, while the NASDAQ and S&P 500 remained in the red. Gold prices also initially dropped following the opening of the US stock market but quickly rebounded as the Dow Jones index began to rise.
Key Market Updates
Gold prices ended the trading day on January 13 with a 1.1% decrease, settling at $2,658.84 per ounce.
The US dollar index reached its highest level since November 2022, driven by a strong US jobs report that highlighted the economy's resilience and diminished the prospects of a Fed rate cut.
The impending inauguration of President Trump and his proposed trade policies, including tariffs and protectionism, may lead to inflation and trade wars, potentially increasing the appeal of gold as a safe-haven asset.
Market Outlook and Expectations
Investors are eagerly awaiting the release of key economic reports, including inflation data, unemployment claims, and retail sales figures, to gain a better understanding of the US economy and the Fed's policy plans. Currently, the market expects the Fed to cut interest rates by 0.25% this year, down from the previous expectation of a 0.4% cut.
Trading Strategies and Recommendations
Despite the current market conditions, which favor a stronger US dollar, gold prices remain within the upward channel and have not shown any signs of breaking down through key support levels.
The current view is to maintain a buying position, with the following entry and exit points:
Buy ZONE: 2662−2660
Stop Loss : $2655
Take Profit : 2668 − 2668 − 2672 - 2676 − 2680
Sell ZONE: 2685−2687
SL: 2692
TP: 2680 − 2680 − 2677 - 2673
SELL ZONE: 2694−2696
SL: 2700
TP: 2690 − 2690 − 2687 - 2685 − 2680
Today's Market Focus
The Producer Price Index (PPI) report will be released today, and investors should be cautious in their trading decisions. The plan for the day will be updated after the Asian and European markets close, and a view for the US market will be provided after the PPI report is released. Remember to follow proper risk management and adhere to take-profit and stop-loss levels to protect your account.
The gold market experienced a decline in prices as the US dollar reached its highest level in over two years. The Dow Jones index initially opened with a decrease but later surged over 100 points, while the NASDAQ and S&P 500 remained in the red. Gold prices also initially dropped following the opening of the US stock market but quickly rebounded as the Dow Jones index began to rise.
Key Market Updates
Gold prices ended the trading day on January 13 with a 1.1% decrease, settling at $2,658.84 per ounce.
The US dollar index reached its highest level since November 2022, driven by a strong US jobs report that highlighted the economy's resilience and diminished the prospects of a Fed rate cut.
The impending inauguration of President Trump and his proposed trade policies, including tariffs and protectionism, may lead to inflation and trade wars, potentially increasing the appeal of gold as a safe-haven asset.
Market Outlook and Expectations
Investors are eagerly awaiting the release of key economic reports, including inflation data, unemployment claims, and retail sales figures, to gain a better understanding of the US economy and the Fed's policy plans. Currently, the market expects the Fed to cut interest rates by 0.25% this year, down from the previous expectation of a 0.4% cut.
Trading Strategies and Recommendations
Despite the current market conditions, which favor a stronger US dollar, gold prices remain within the upward channel and have not shown any signs of breaking down through key support levels.
The current view is to maintain a buying position, with the following entry and exit points:
Buy ZONE: 2662−2660
Stop Loss : $2655
Take Profit : 2668 − 2668 − 2672 - 2676 − 2680
Sell ZONE: 2685−2687
SL: 2692
TP: 2680 − 2680 − 2677 - 2673
SELL ZONE: 2694−2696
SL: 2700
TP: 2690 − 2690 − 2687 - 2685 − 2680
Today's Market Focus
The Producer Price Index (PPI) report will be released today, and investors should be cautious in their trading decisions. The plan for the day will be updated after the Asian and European markets close, and a view for the US market will be provided after the PPI report is released. Remember to follow proper risk management and adhere to take-profit and stop-loss levels to protect your account.
Trade active
In the European session, PLAN EU: If Gold remains above 2,662 at the start of the session, the Buy position is still valid. The Buy trade will only be reconsidered if Gold drops and closes a candle below 2,662, at which point a potential Sell position may be considered with a target of 5 - 10 prices
Additionally, if Gold rises from the middle of the European session onwards but fails to break above 2,678, it will be time to exit the Buy position and look for early Sell opportunities with a target of 5 - 10 prices
Trade closed: target reached
Hit full TP from entry 2682 - 2680 reaching 80 pips, continuing to profit with PPI news
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