Two reasons to buy XAU/USD

June 29, 2015


This week we shall expect development of an ascending tendency. The past weekend, Greece was not able to settle with its creditors which puts risks in Euro zone to the very high level. In periods of instability, precious metal is of a high demand. Secondly, the past week, yield of US 10 years' treasuries grew by 19 p. to the level 2.47%. It indicates increased expectations of inflation and is positive for Gold. So, this week we should open Buy of decline of quotations to the area 1172/1162 and take profit on the point 1190.


Bulls are expected to dominate this week. Firstly, US labor market demonstrate ascending yet moderate trend which points at a sustainable demand and is positive for both metals. Secondly, strong reports on manufacturing and non-manufacturing PMI of leading European states also proves recovery of the European economics. It will contribute to growth of quotations of industrial metals.

Copper was the first to respond to this and by the end of the week it added 2.37%. Now it is turn of Platinum and Palladium to reach higher goals.

So, in the middle of the week we should open Buy trades on XPT/USD using decline of quotations to the area 1077/1060 and take profit on the point 1100 and Buy on XPD/USD using decline of quotations to the area 673/663 and take profit on the point 699.


This week bears are expected to rule. The past week, investors expected a positive outcome of a Greek crisis but parties did not manage to come to an accommodation. Long positions can be closed and sales may go on. Investors will leave risky assets (stock market) and switch to safe assets (gold and Japanese Yen). We cannot come by dynamics of a bond market. The last week , 2 years' treasuries grew up to 0.715%. It means that investors still expect that this Fall FRS will raise interest rate. This is a negative factor for the stock market. So, this week we should open Sellpositions on growth of quotations to the area 2105/2115 and take profit on the point 2083.

Publication source
FreshForex information  FreshForex reviews

October 21, 2016
Gold prices drop in Asia amid stronger greenback
On Friday, gold dropped during Asia trade amid a strengthening greenback as well as surging chances of a rate hike weighing on the hedge commodity...
October 21, 2016
ECB holds the rate unchanged with the pressure on Draghi
After a brief upturn seen in the late Asian trading, the currency retreats to the Wednesday close showing a tepid response to the ECB policy update. The New York FED leader William Dudley comments offered a support to the Dollar rally although the focus remained on the US inflation...
October 21, 2016
EURGBP Tests Major Support
This morning we saw the release of German PPI YoY and MoM figures for September. The former fell to -1.4%, compared to expectations of -1.2%. The latter was -0.2%, in line with expectations...

Orbex Rating
Vantage FX Rating
HotForex Rating
Fort Financial Services Rating
Tickmill Rating
FXCM Rating

365BinaryOption Rating
TopOption Rating
TropicalTrade Rating
OptionsXO Rating
Beeoptions Rating
Porter Finance Rating