Gold Demand & Trends

2.  Gold Demand trends
 Annual Gold Demand Chart
 Highlights
 Today’s MT4 Indicators
 Today’s MT4 Candlesticks
 Today’s MT4 Tools
 Gold Chart & Price

3.  Weak Q4 set the seal on an 11-year low for
annual 2020 gold demand.
 The global gold market was ravaged by COVID-19
disruption throughout the year, while record high
prices were a mixed blessing.
 Fourth quarter gold demand of 783.4t (excluding
over-the-counter – OTC – activity) was 28% lower
y-o-y, making it the weakest quarter since the
midst of the Global Financial Crisis in Q2 2008.
 The coronavirus pandemic, with its far-reaching
effects, was the driving factor behind weakness
in consumer demand throughout 2020,
culminating in a 14% decline in annual demand
to 3,759.6t, the first sub-4,000t year since 2009.

5.  The US dollar gold price returned 25% in 2020 supported by
investor demand. After reaching a record high in August across
most currencies, the LBMA Gold Price PM dropped back to
US$1,762.55/oz at the end of November, before recovering to
close the year at US$1,887.6/oz.
 Inflows into global gold ETFs reached an annual record of
877.1t (US$47.9bn). Increased uncertainty and the policy
response to the pandemic likely fuelled consistent inflows
through October, before a recovery in sentiment and a drop in
the gold price likely led to 130t of outflows in Q4.
 Demand for gold bars and coins grew 10% in Q4. A recovery in
China and India in the second half of 2020 added to continued
strength in Western markets to lift annual demand to 896.1t
(+3%).
 2020 marked a record low for gold jewellery demand. Despite
a quarterly recovery in Q4, demand was unable to overcome the
continued challenges presented by COVID-19.
 Gold buying by central banks slowed sharply in 2020, almost
60% lower at 273t. Q4 saw a return to net buying: global official
reserves grew by 44.8t during the quarter, more than reversing
the 6.5t of net sales from Q3.

6.  Unlike the MACD, RSI is a leading indicator.
 It measures the ratio of upward price movement
to downward price movement, and normalises
the calculations to reflect trend strength in a
range of 0 to 100.
 If the RSI is >70, the market conditions are said
to be overbought; that is prices have increased
more than market expectations.
 If the RSI is <30, it is considered a signal that
the instrument is oversold, giving an indication
that the prices might rise in the future.
 Traders usually consider this situation as a signal
to buy. Readings of 70 and higher is considered
an indication to sell.

7.  Bollinger Bands are volatility indicators, used to
identify key support and resistance levels.
 These bands or channels widen and contract,
depending on the extent of volatility in the market.
 There are 3 lines that make up the volatility channel:
the central Simple Moving Average (SMA) line with
default value of 20, the lower band (two standard
deviations lower than SMA) and the upper band (two
standard deviations above SMA).
 In a highly volatile market, the bands tend to widen
and contract subsequently (squeeze) with decreasing
volatility. Traders usually place entry and exit points
near these channels, rather than exactly on them.
 Sell orders are placed in the upper band limit and
buy orders near the lower band limit.

8.  The bullish three line strike reversal pattern carves out three
black candles within a downtrend.
 Each bar posts a lower low and closes near the intrabar low.
 The fourth bar opens even lower but reverses in a wide-
range outside bar that closes above the high of the first candle in
the series.
 The opening print also marks the low of the fourth bar.
 According to Bulkowski, this reversal predicts higher prices with
an 83% accuracy rate.

9.  The bearish two black gapping continuation pattern
appears after a notable top in an uptrend, with a gap down
that yields two black bars posting lower lows.
 This pattern predicts that the decline will continue to even
lower lows, perhaps triggering a broader-scale downtrend.
 According to Bulkowski, this pattern predicts lower prices
with a 68% accuracy rate.

10.  The Session Map shows your current local time in
relation to “sessions” during the trading day, i.e. the
core trading hours when institutional dealers are
most active in Sydney, Tokyo, London and New York.
 The Session Map also shows markers for future news
events; information about your floating P/L and
equity; and price activity during each session.

11.  The Tick Chart Trader shows tick charts in a
variety of styles, and allows quick trading using
either keyboard or mouse.
 The tick charts are compiled from the time that
the app starts running.
 It does not provide access to historic tick data.