Ticker tape by TradingView

August 2, 2022

Why Gold Could Be A Long Term Buy Now

Frank Cabibi

Gold is up another half percent on the day as investors weigh in a potentially weaker dollar based on a slowdown in US output. As we continue what is expected to be a volatile week, here are some reasons why gold may have finally snapped its downtrend and is gearing for a long term upside move.

Edgefinder Reading

gold

Our market scanner is giving gold a +2 buy rating. The Edgefinder gave gold a positive score one week ago, and the scanner accurately predicted a price swing to the upside. The metal got its first positive rating on July 27. Since then, price ran up another 3%.

Gold's Outlook

Gold's performance is largely tied with the economic state of the US as well as the geopolitical state around the world. In times of conflict, like the situation in Ukraine, gold will usually find upside. If GDP growth slows down or turns negative, investors find more value in gold over the market and the dollar.

In this case, we are experiencing both. However, according to last week's COT reports, the metal is not really seeing any considerable interest from major players. So, this week might be the first time in a while that institutions are putting more money into the metal.

Investors may be trying to price in a higher gold price on future contractions in GDP and job growth (NFP).

Gold's Breakout

Gold broke above the falling trend line on the 1D chart, marking a big bullish indicator for the precious metal. Price is now testing a big resistance level at $1787 but shows strong potential to the upside. If we can see a close above the falling trend line/resistance level, gold might get above the $1800s again. The Edgefinder is now giving gold a positive outlook as the US market continues to show reactionary periods in GDP. Price is exceptionally volatile too, so big price swings are likely to continue as we approach Friday's NFP news.

The fib drawing suggest major resistance around $1860 should price complete a break above the current resistance level.

A1 Edgefinder

FLASH SALE
Take 10% off the Edge finder using code "READER"
GET ACCESS NOW

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
A1 Trading Podcast
Why Global Recession Is Still Likely

On Friday this past week, the United Kingdom’s Office for National Statistics released the latest reports on the UK’s Gross Domestic Product (GDP), a means of measuring economic output. It was revealed that their economy grew by -0.6% month-over-month, and -0.1% quarter-over-quarter, which entails a contraction for both timeframes. Although these numbers are less disastrous […]

Read More
Has Everything Changed for Major Pairs?

This week the public received startling news: on Wednesday morning, month-over-month CPI (a proxy for inflation) in the United States had unexpectedly remained static, clocking in at 0% whereas a moderate 0.2% increase had been forecast. Core CPI (which excludes food and energy prices) likewise came in lower than anticipated at 0.3% month-over-month, while Thursday […]

Read More
Buy Kiwi Now Before Rate Hike

Next Tuesday, the RBNZ will announce their new official bank rate which is expected to be 3%, a 0.50% rise from July. This hike will make it the highest yielding major currency on the market. Here is why you should consider buying the kiwi before Tuesday's decision as well as some strong NZD long setups. […]

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