Wednesday, January 2, 2019 5:45 AM EDT
The outlook for Gold at the start of 2019 can be considered very positive from different perspectives. Not only did the precious metal take on serious momentum after the dovish rate hike of the Fed in December, but Gold also gained further with the US shutdown from 22 December onwards. And even if the shutdown will occur sooner rather than later, and then end after Democrats regain majority in the House, to vote on legislation to end the shutdown without adding funds for Trump's wall against Mexico, that doesn't necessarily mean that Gold won't reconquer the mark around 1,300 US/ounce in the days to come.
Source: Economic Events 02 January 2019 - Admiral Markets' Forex Calendar
This is especially true if the incoming data around the ISM, ADP (Thursday) and NFPs (Friday) disappoint, but also because Gold faces a seasonal strong window in the days ahead. During the time span from 7th January till 18 January, January Gold gained over the last 20 years 15 times, and averaged a profit of 22.16 USD/ounce. The five years that Gold lost, it showed an average loss of 10.98 USD, with a maximum drawdown of 23 USD. With this pattern in mind, the advantage can clearly be found on the upside, and a push towards 1,300 USD/ounce has a good chance, from a technical perspective as long as we trade above 1,233 USD on a daily time frame.
(Click on image to enlarge)
Source: Admiral Markets MT5 with MT5SE Add-on Gold daily chart (between 26 November 2017 to 01 January 2019). Accessed: 01 January 2019 at 1:00 PM GMT - In 2013, the value of Gold fell by 28.1%, in 2014, it fell by 1.7%, in 2015, it fell by 10.4%, in 2016 it increased by 8.1%, in 2017 it increased by 13.1%, meaning that after five years, it was down by 21.9%. - Please note: Past performance is not a reliable indicator of future results, or future performance.
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") ...
more
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Any investment decision is made by each client alone whereas Admiral Markets Group AS investment firms (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
The Analysis is prepared by an independent analyst (hereinafter "Author") based on the Author's personal estimations.
To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.
less
How did you like this article? Let us know so we can better customize your reading experience.