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7 Reasons Gold will continue to Grow (Updated) June 2021Hello Traders. Here is THE XAUUSD UPDATE YOUVE BEEN WAITING FOR! Here is my Previous Analysis on GOLD - The economic data, the stock market, and businesses' actual health are completely out of sync. That is because the U.S. stock market is still sitting near its record high while enterprises are consistently forced to close. With the new variant of coronavirus, chances are that lawmakers are likely to keep their guards up entering the first quarter of 2021 and that they can reinstate more lockdowns. Struggling businesses are more likely to file for more bankruptcies, and there are greater chances that it will create more shocks for the global economy. Such an event could once again help the gold price to move higher. Something that is surely going to influence the gold price is the trend in the dollar index, which is determined by the Federal Reserve's monetary policy stance. According to the most recent Federal Reserve meeting, it was clear that the Fed is more optimistic about the economic recovery, and this made them upgrade the growth forecast for the U.S. economy. As Mentioned Before in ( 23th January 2021 ) - I still Think the GOLD Price Will Reach All Time Highs in 2021 & 2022 Here Are the Reasons why I Say that - 7 Reasons Gold will continue to Grow Correlation to Inflation Certainly, during times of economic crisis, investors flock to gold . When the Great Recession hit, for example, gold prices rose. But gold was already rising until the beginning of 2008, That said, gold prices rose further, even as the economy recovered . Essentially that means, as more people buy gold , the price goes up, in line with demand. It also means there aren't any underlying "fundamentals" to the price of gold . If investors start flocking to gold , the price rises no matter what shape the economy is or what monetary policy might be. That doesn't mean that gold prices are completely random or the result of herd behavior. Some forces affect the supply of gold in the wider market, and gold is a worldwide commodity market, like oil or coffee . Supply Factors Unlike oil or coffee , however, gold isn't consumed. Almost all the gold ever mined is still around and more gold is being mined each day. If so, one would expect the price of gold to plummet over time, since there is more and more of it around. So, why doesn't it? Aside from the fact that the number of people who might want to buy it is constantly on the rise, jewelry and investment demand offer some clues. "It ends up in a drawer someplace." The gold in jewelry is effectively taken off the market for years at a time. Even though countries like India and China treat gold as a store of value, the people who buy it there don't regularly trade it (few pay for a washing machine by handing over a gold bracelet). Instead, jewelry demand tends to rise and fall with the price of gold . When prices are high, the demand for jewelry falls relative to investor demand. Central Banks Big market movers of gold prices are often central banks. In times when foreign exchange reserves are large, and the economy is humming along, a central bank will want to reduce the amount of gold it holds. That's because the gold is a dead asset—unlike bonds or even money in a deposit account, it generates no return. The problem for central banks is that this is precisely when the other investors out there aren't that interested in gold . Thus, a central bank is always on the wrong side of the trade, even though selling that gold is precisely what the bank is supposed to do. As a result, the price of gold falls. Central banks have tried to manage their gold sales in a cartel-like fashion, to avoid disrupting the market too much. Something called the Washington Agreement essentially states that the banks won't sell more than 400 metric tons in a year. It's not binding, as it's not a treaty; rather, it's more of a gentleman's agreement—but one that is in the interests of central banks, since unloading too much gold on the market at once would negatively affect their portfolios. ETFs Besides central banks, exchange-traded funds (ETFs)— which allow investors to buy into gold without buying mining stocks—are now major gold buyers and sellers. Both ETFs trade on the exchanges like stock and measure their holdings in ounces of gold . Still, these ETFs are designed to reflect the price of gold , not move it. Portfolio Considerations Speaking of portfolios, A good question for investors is what the rationale for buying gold is. As a hedge against inflation , it doesn't work well. However, seen as one piece of a larger portfolio, gold is a reasonable diversifier. It's simply important to recognize what it can and cannot do. In real terms, gold prices topped out in 1980, when the price of the metal hit nearly $2,000 per ounce (in 2014 dollars). Anyone who bought gold then has been losing money since. On the other hand, the investors who bought it in 1983 or 2005 would be happy selling now. It's also worth noting that the 'rules' of portfolio management apply to gold as well. The total number of gold ounces one holds should fluctuate with the price. If, for example, one wants 2% of the portfolio in gold , then it's necessary to sell when the price goes up and buy when it falls. Retaining Value One good thing about gold , is that the purchasing power of gold has stayed quite constant and largely unrelated to its current price. The Bottom Line If you're looking at gold prices, it's probably a good idea to look at Investing in GOLD Throughout Year 2021 I hope this was clear and informative for all of you, I wish you a good 2021! Stay Safe! Global Fx education
OANDA:XAUUSD
by Global_Fx
73
HDFCBANK - Good time to enter/pyramiding - Swing/InvestmentThe above analysis is done purely on basis of Price Action & Chart Patterns. The analysis is done on weekly TF hence price may take few days to few weeks in order to reach the targets. Trade Entry - Either above the high of breakout candle or on small pullbacks Target and SL for both patterns are given in image. The above analysis is purely for educational purpose. Traders must do their own study before entering into any trade. Traders must trade as per their own risk taking capacity and money management. Feel Free to comment or message me for any query or suggestion regarding this stock or Price Action Analysis. Checkout my other ideas to understand how one can earn from stock markets with simple trade setups.
NSE:HDFCBANKLong
by AdityaKarn90
2
GBPCHF - Bullish ViewIn this weekly analysis about GBPCHF, I will share a simple strategy but yet powerful enough to give all of you decent profits. First before explaining further, you all should know that trading is a game of information. And a game always related to a probability. Meaning every party involved in the game can not make sure that they know for sure what will happen in market. Everything analysis made will give you what probability higher than others to happen. Like if you walk out of your house and want to go to do shopping. You know what route you will take to deliver you to your favorite market place. You also know what vehicles you should take to make your journey more comfortable and faster for example. You also know how much money you should take to do your shopping, and what things you should buy. But do you know what will happen to you during the journey to the destination of market place you want? Perhaps, you will get stuck in a traffic jams or you will find difficulty to get place to park your car or you will find annoying people or meet people you do not want to meet or bla bla bla.... There are so much probability you will have. This world like that and including the trading itself. So, you have to realize this , if not you will get to the wrong purpose to find a precision trading system that you will never find in this world. Back to the GBPCHF, after breaking out 1.22866, this pair undergo a very well non volatile bullish trend and then this trend changes. Now market is "pausing" and take breath. Forming a box range correction. So, the trading strategy in this kind of correction obviously difference than the last. So, what should you do? First, you can wait until this correction finished by seeing market breakout the last resistance (1.29660) and jump to market after that (scenario 2) Second, you can trade carefully inside this correction structure as a buyer. Meaning, you wait patiently on support and find a chance to buy on it if market near or at this support. And then riding the upward movement after that (scenario 1). The target already shown in the chart. Okay, good luck then.
GLong
by Jee_D
ETN seems to be under valued to us this Asset seems to be very under valued and it has good chance to have some serious growth unfortunately at the current moment we may not be able to trade or invest on its Derivatives as no exchange has listed it on the F&O sections but we can invest on the Asset itself as it has some good opportunity to grow in some times we can presume to have semiannually horizons or even longer term investment opportunities we had currently specified two targets to capitalize on it
Long
by BitonGroup
2
ANKRBTC (Ankr) – Coin of the WeekThis week’s coin is Ankr. Ankr is trying to build a very efficient blockchain framework that enables distributed cloud computing and provide user friendly business applications. It’s price today is 0,00000037 BTC with a 24-hour trading volume close to $41 millions. Technically we expect a continuation of the uptrend that started in late January 2020 and had a high of 0,00000156 BTC in August. Trade with care. Best regards, Financial Flagship Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
Long
by financialflagship