2. Points To Be Discussed Today:
• Trading Gold Futures
• XAU/USD Exchange Rate
• Price Fluctuations
• Gold Exchange Rate
• Gold Pivot Points
• Gold Advanced Live Chart
• Markets Form Inverted Hammer
• The Strength Of Gold Continue To Break Down
3. Trading Gold Futures
• Trading gold futures has become
increasing popular as the price of gold
has fluctuated so greatly in recent
months.
• Gold futures are contracts that provide
for the delivery of gold in the future at a
price that is agreed upon in advance.
4. Advantage Of Trading Gold Futures
• The advantage of trading gold futures lies
in the fact that this asset is traded via a
centralized exchange.
• Which allows for more leverage and
flexibility than one could get when
trading gold as an asset on its own.
5. XAU/USD Exchange Rate
• XAU/USD is the ratio of gold to the U.S.
dollar and appears as such on
commodities markets.
• World currencies are affected by rising
gold prices and the higher prices are
quite significant to the currencies of
major gold-producing countries such as
Canada, Australia and South Africa.
6. Mode Of Investors Trade
• An investor who believes the price of
gold will continue to increase, can trade
in the Australian dollar (AUD), the
Canadian dollar (CAD) or the South
African Rand (ZAR) instead of investing
only in the US dollar.
• Because the other currencies have
tremendous potential.
7. Price Fluctuations
• Gold to the dollar is traded on several
financial exchanges, primarily New York,
Hong Kong, Zurich, Tokyo, and Sydney.
• It is the London bullion market, however,
that has a greatest influence on the
world gold trading markets.
8. Price Of Gold Fluctuates
• The price of gold fluctuates greatly but
for trading purposes it generally fixed
twice each business day at 10:30 am and
3:00 pm UK time by the London Gold
Market Fixing Ltd.
• It is important to watch the charts for a
trend in gold prices before purchasing
futures at any time of year.
9. Price Of Gold Is Important For Traders
• There’s no question that the price of gold is
important for traders of many currencies
because of the correlation between gold
prices and currency values.
• For this reason, the Daily Forex team strives
to provide regular updates about the price of
gold today. Get the latest information here, or
take a look back to see how this metal has
been performing over time.
13. Markets Form Inverted Hammer
• The gold markets rallied significantly on Friday
but gave back the gains to show signs of
exhaustion.
• The candlestick is a very negative-looking
one, so if we can break down below the
candlestick from the Thursday session, I think
this market will fall apart.
• The $1750 level needs to hold for gold to have
any hope of a rally.
14. Markets Form Inverted Hammer - I
• Things are looking rather dire right now, but it
will be interesting to see how we open up the
week on Monday.
• If we do break down below the $1750 level,
my next target would be the $1725 level,
possibly even the $1680 level after that.
• The $1680 level is going to continue to see a
lot of buying pressure, where we had bounced
from multiple times.
15. Markets Form Inverted Hammer - II
• That is an area that I think will attract a lot of
attention, and it is possible that buyers would
jump into the market to push things back to
the upside yet again.
• I think that would be an excellent value
proposition, but we need to get there first.
• If we were to break down below the $1680
level, it is possible that we could drift all the
way down to the $1500 level rather rapidly.
16. Markets Form Inverted Hammer - III
• That is a large, round, psychologically significant
figure, which would attract even more attention.
• This is a market that has been in an uptrend for a
while, but this last selloff has been quite brutal.
• I anticipate that will go lower, and you will need
to pay attention to the US dollar which has a
huge negative correlation to the gold market
itself.
17. Markets Form Inverted Hammer - IV
• The market would need to take out the nasty
candlestick from the Thursday session in order to
go higher, perhaps taking out the $1800 level.
• At that point, we would be looking at a move
towards the $1835 level.
• That seems to be very unlikely though, and as a
result I am looking for an opportunity to short
this market any chance I can on signs of
exhaustion or perhaps even a breakdown.
18. The Strength Of Gold Continue To
Break Down
• With this in mind, I think that the US
dollar is a big driver of where we will go
next more than anything else.
• Furthermore, if interest rates rise in the
United States, it is likely that it will
continue to break down the strength of
gold, assuming it even has any at that
point.
