A1 Trading Company

Ticker tape by TradingView

August 5, 2021

Should You Buy Gold Now? Things To Consider

Frank Cabibi

8/5/2021

Gold tumbled this morning on near-expected unemployment claims reported in the US while the dollar fell as well. This sharp sell-off to the high $1790s made gold look like it was in free fall, but price quickly bounced back and is hovering around the $1807 range at the time of writing this. Price is now fluctuating as investors wait for NFP new tomorrow.

Our outlook

Recent news of the Vice Chair of the Fed became more hawkish towards the USD and said that the Fed might start tapering by late 2021-early 2022, one year ahead of what they originally thought. This will usually follow up with a raise in interest rates. And investors might have been trying to price that in this morning when we saw that big drop. The metal may continue to dip or consolidate for some time if the dollar sees more demand in the near future. I think the $1790-1800 level is going to be hard to break under since it has served as major support in the long term, but it's hard to tell. I also think with inflation concerns still looming over the dollar, gold might have a chance to come back to test the $1820s again.

Trade Setups

XAUUSD

Gold on the 4H timeframe showing a bearish move as price crossed under a rising trend line from July. Price touched the $1790s before bouncing because this level serves as major support from April. A break below this level could lead to a further drop to the $1750s. However, the previous 4H candle showed some hard rejection from the lows which could signify a bottom here for the precious metal. Resistance at $1820 and $1830.

A1 Edgefinder

Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.

10% off code: 'READER'

GET ACCESS NOW

VIP discord

Trade Alerts, Strategies, Chatrooms & more!

10% off code: 'READER'

LEARN MORE
What To Expect From Today's FOMC

Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]

Read More
The Art of Not Trading

With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]

Read More
Best Currency to Buy?

As the fiscal year comes to a close, consumers will likely finish shopping for the holidays, and traders and investors will get some respite thanks to a long weekend due to bank holidays around the world. While concerns about further stock market selloffs may be lingering in the minds of some, a promising set of […]

Read More
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
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram