Ticker tape by TradingView

Want Trade Alerts?

See all of our entries, exits, and analysis. 
Use code READER for 25% OFF!
Join VIP

August 2, 2021

Gold Could Top $3000. Time To Be Bullish?

Frank Cabibi

8/2/2021

The price of the gold bullion fell a little over 1% last Friday amid a red stock market day in the US as big earnings were released. A big question for the average is investor is whether to be bullish on gold or the US dollar. The Fed has announced that they will keep interest rates from going negative and that they will keep boosting the economy while it recovers. But is that good or bad for the strength of the USD/gold?

Our outlook

In the Fed's FOMC conference and Q&A last Wednesday, Jerome Powell made it clear that they are a long way from tapering of any kind. That means more asset purchases and more money printing without slowing. The combination of low interest rates and the indefinite increase of supply is a great sign for the gold bulls. Quadriga Igneo fund manager, Diego Parrilla called the tapering process "glacial" as in that when the Fed does start to taper, it will be very subtle each time, which will take a long time for the Fed to slowly remove the fiscal columns currently supporting the US economy, according to a Bloomberg article. With these factors in mind, I do think gold has a likely chance of recovering from the $1,800s, and I could definitely see a push to the $1,900 in the second half of this year.

Trade Setups

XAUUSD

Gold bounced off a rising trend line on the 4H and daily chart with a big rejection from the lows on the most recent 1D candle. I think price could try to test the $1830s at some point this week if this candle can remain looking this bullish. Price is currently up 1.91% from the time of the golden cross back on June 25.

Gold on the 4H chart has resistance around $1,822 and support on the rising trend line should price dip, but a second test at this low won't look good without taking a shot at the $1,830 mark before then at least. In other words, gold will have to break above the $1,820s to look more bullish from a technical standpoint.

new trade alert

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Use Code "READER" for $5 OFF!
JOIN NOW

FREE broker quiz

Need Help Finding The Perfect Broker?
Take our broker quiz and find out your best broker match!
FIND A BROKER

free Trading PLan

Download Now
Create a Trading Plan Using Our FREE Template
DOWNLOAD
A Market Surge Could Be About To Happen

A potential stock market surge could be gearing to happen soon as investors and analysts stay bullish. Some analysts are calling for a bottoming-out soon where price finds itself at a key level of support. Buyers look like they are ready to step in although stuck in volatile behavior that is rocking the discipline of […]

Read More
Read This Now Before You Buy Gold

Gold flies higher today amid inflation concerns in the US and globally. Even as treasury yields hit a 2-year high, the metal jumped above a key resistance level and is looking to test another. Gold Outlook Although we are seeing considerably high gains for gold in the short term, it still seems unlikely that the […]

Read More
How Much Money Do You Need to Trade Forex?

One of the most common questions we hear from beginner traders is "How Much Money Do You Need to Trade Forex?" and our answer is: well, it depends. The amount of money you need depends on your goals as a trader. Is your goal to make a lot of money or are you going to […]

Read More

Create a Trading Plan Using Our FREE Template

DOWNLOAD FREE
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram