RAPID SIGNAL BUY NOW Gold (XAU/USD) SET SL @: 1754 (ar | Focal Community Group (FXSignals)

RAPID SIGNAL
BUY NOW Gold (XAU/USD)

SET SL @: 1754 (area)

Gold saw heavy losses today mainly due to the strength of the dollar. Investors expect the Fed to announce the start of the tapering process - which means that the central bank is stepping away from a historic level of emergency support for the economy. Even though this is clearly the beginning of the normalization of monetary policy and will likely be also called as a necessary step to keep high inflation from spiraling further out of control, I still believe that Powell will try to explain this as a very cautious move. He will try not to further burden the already uncertain market, which is plagued by rising/high COVID cases, geopolitical tensions and supply chain disruptions, with the fear of tighter monetary policy. We also don't see a sharp rise in longer-term bonds, which I take as a sign that the market doesn't expect the Fed to also raise rates more or less aggressively, but will act extra cautiously here. Gold broke out of its $1.770 - $1.810 range to the downside, but I believe that there is not much downside left and that overall the expectation that high inflation will persist for longer (possibly even stagflation will occur) continues to support gold for now / and into 2022.

Tip: Multiply your usual lot size by ~ 0.50 – 0.75 (50% - 75%) trading Gold (XAU/USD).

Signal delayed by ~ 20 minutes
(non-delayed signals in VIP group).


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