Trading Opportunities | Will Gold Return to $1,600
Trading Opportunities and Key Economic News:
Gold trading opportunities tell us that the price of gold will decline significantly in the coming period, but there are conditions that must be met for this scenario to occur. We will explore those conditions through today’s analysis article covering the period September 5-9 2022
This week’s technical and fundamental analysis article is full of important economic news that will surely have a major impact on the prices of currencies, indices and metals, prompting us to identify the days and news when strong economic data is released.
However, it must be noted that the beginning of the week will be very quiet due to the central bank holidays in the United States of America and Canada on the occasion of Labor Day on Monday September 5th. 2022.
As for the rest of the trading days, the big news starts on Tuesday, September 6, 2022 when we witness the announcement of interest rates in Australia at precisely 7:30 am Saudi time, which will affect Australia and gold pairs, and it will expects interest rates to be raised by 50 basis points.
The Reserve Bank of Australia governing council meets every month except January to set the short-term interest rate. After the meeting, the bank publishes a statement with the interest rate decision, and if the interest rate changes, it publishes a statement with the economic conditions that influenced its decision. The decision to set interest rates depends mainly on inflation
On Wednesday, September 7th, we have an appointment with the Bank of Canada, which will announce the interest rate decision in North America (Canada), which is also expected to rise by 25 basis points.
The news will be announced at exactly 5 p.m. Saudi time.
And we end this week’s important news on the currency of the European Union “the euro” on Thursday, September 8th, as interest rates for the euro will also be announced, and the news will be announced at exactly 3:15 p.m. Saudi time given.
Gold Trading Opportunities:
Gold prices are trading within the descending wave we referred to in last week’s analysis video and before last week’s close prices made some bullish price corrections which led many traders to believe that prices will continue to rise but the selling Vision still stands and we expect prices to continue to complete the down wave.After the market open, it reached $1695 level during new week’s trading.
The main reason that leads us to confirm the continuation of the decline is that in all its statements the US Federal Reserve is still strongly supportive of the dollar, confirming that inflation rates are still high and there will be more interest rate hikes Dollar weakening gold causing investors to abandon it completely and move on. Prices fall.
Trading opportunities on the Dow Jones:
The Dow Jones Index is facing a strong price wave as the sellers have been controlling the price action from 34281 levels and this selling control has continued until the last trade in the Dow Jones prices which is expected to be until the Demand level continues between 39196 and 29664, these are the areas where purchasing power is concentrated. We expect it to stop the bearish wave and start a corrective increase in price action, albeit temporarily.
The stock market will be severely negatively impacted when interest rates on the dollar rise and investors start abandoning stocks and exiting the financial market to purchase government bonds with high financial yields. Hence, with the continued rise in interest rates in America, it is expected that the prices of American indices will continue to fall in the coming period.
Trading Opportunities for the Euro vs. the Dollar:
The Euro currency against the US Dollar saw intense selling operations before the close in the past week which caused a state of concern among many traders and at the close we note that the daily pattern formed strongly supports the idea of continuation of the downmove in the coming time.
And given the Russian developments with the European side in general, which ranged up to the closure of the main gas pipeline “Nord Stream” indefinitely up to the date of writing the report, it is clear that the European side has a date with a severe winter with a very weakhen production capacity and consequent slowdown in the economy which will increase the weakness of the union (euro)
But from time to time the European Central Bank raises interest rates to counter inflation, which pushes the Euro for further correction, but if prices break the support level at 0.9900 then prices are expected to continue falling sharply because this level is the last point of defense for buyers in the long term. We notice that with each contact, prices rise temporarily.