Trading Strategy for Gold in the Asian and European Sessions
The gold market remains strong and resilient, holding firm above the $1,950 per ounce mark, even as the Federal Reserve adopts its most aggressive tightening measures in over 40 years.
Steve Land, the Investment Portfolio Director of Franklin Gold and Precious Metals Fund at Franklin Templeton, believes that gold is in a favorable position to reach record highs as the US Central Bank approaches its final interest rate hike. He also emphasized that investor demand is crucial in driving gold prices back to the record level above $2,000 per ounce.
Land explained that concerns over slowing economic growth are supporting the financial markets, which in turn is boosting investment demand in gold. These positive views about gold come at a time when the Federal Reserve is conducting its two-day monetary policy meeting. The market is confident that the US Central Bank will raise interest rates by an additional 25 basis points after this meeting, and some expect this to be the final rate hike in the strongest tightening cycle in four decades.
According to Land, whether this is the last rate hike or not, it's clear that the Fed is nearing the end of its tightening measures. Although the US economy has been relatively stable in the first half of 2023, the impact of the central bank's monetary policies takes time to be felt in the economy. As a result, gold investment demand has slowed down throughout most of 2023 due to the robust economy supporting the stock market. However, even a slight change in investor demand could be enough to push gold prices back up to $2,000 per ounce.
Nicky Shiels, a metal strategist at MKS PAMP, shares the same positive outlook, mentioning that she sees potential in gold because the Fed's monetary policy is not favorable for the US dollar.
Trading Strategy:
SELL XAUUSD when the price is around 1970 - 1975
Set Stop Loss at 1979
Take Profit 1 at 1960
Take Profit 2 at 1955
Take Profit 3 at 1950
BUY XAUUSD when the price is around 1949 - 1953
Set Stop Loss at 1945
Take Profit 1 at 1960
Take Profit 2 at 1965
Take Profit 3 at 1970
Please note: Only trade with 1% of your account to manage risk properly. Avoid exceeding 5% of your account within the nearest 10 price levels. Always use Stop Loss in all situations and be mindful of your current capital when entering trades."
Steve Land, the Investment Portfolio Director of Franklin Gold and Precious Metals Fund at Franklin Templeton, believes that gold is in a favorable position to reach record highs as the US Central Bank approaches its final interest rate hike. He also emphasized that investor demand is crucial in driving gold prices back to the record level above $2,000 per ounce.
Land explained that concerns over slowing economic growth are supporting the financial markets, which in turn is boosting investment demand in gold. These positive views about gold come at a time when the Federal Reserve is conducting its two-day monetary policy meeting. The market is confident that the US Central Bank will raise interest rates by an additional 25 basis points after this meeting, and some expect this to be the final rate hike in the strongest tightening cycle in four decades.
According to Land, whether this is the last rate hike or not, it's clear that the Fed is nearing the end of its tightening measures. Although the US economy has been relatively stable in the first half of 2023, the impact of the central bank's monetary policies takes time to be felt in the economy. As a result, gold investment demand has slowed down throughout most of 2023 due to the robust economy supporting the stock market. However, even a slight change in investor demand could be enough to push gold prices back up to $2,000 per ounce.
Nicky Shiels, a metal strategist at MKS PAMP, shares the same positive outlook, mentioning that she sees potential in gold because the Fed's monetary policy is not favorable for the US dollar.
Trading Strategy:
SELL XAUUSD when the price is around 1970 - 1975
Set Stop Loss at 1979
Take Profit 1 at 1960
Take Profit 2 at 1955
Take Profit 3 at 1950
BUY XAUUSD when the price is around 1949 - 1953
Set Stop Loss at 1945
Take Profit 1 at 1960
Take Profit 2 at 1965
Take Profit 3 at 1970
Please note: Only trade with 1% of your account to manage risk properly. Avoid exceeding 5% of your account within the nearest 10 price levels. Always use Stop Loss in all situations and be mindful of your current capital when entering trades."
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