Technical Analysis
Similar leaning head and shoulder pattern to start of Q4 of 2021 for Gold price.
Used same slope as 2021 for estimating trend line forecasted to a take-profit level at 2114 Support level.
Estimated time frame for take-profit orders would be around September 2022.
MACD and RSI convergence shows bearish signals in the short-term.
Big swing in Stochastics doesn't provide a good bearish confirmation for the short-run. Will need to wait and watch.
Good stop loss level at 2500 gives a healthy 4:1 Profit-to-Loss ratio.
Fundamental Analysis
The Ukraine-Russia war boosted the Gold price in Q1 of 2022.
Eased concerns and talks with the Kremlin have eased the Gold price starting in Q2 of 2022.
As gold is considered a safe haven asset during times of turmoil and fear, assuming negotiations continue with the Ukraine-Russia conflict, gold should continue to decline.
Rising inflation has caused commodity prices to sky rocket, and will continue to do so.
Economists forecast sustained economic growth, but much slower growth. The risk is based on the uncertainty of this growth, the rate at which gold price will reduce might reduce causing the estimated duration of this trade to lengthen further than September 2022.
Similar leaning head and shoulder pattern to start of Q4 of 2021 for Gold price.
Used same slope as 2021 for estimating trend line forecasted to a take-profit level at 2114 Support level.
Estimated time frame for take-profit orders would be around September 2022.
MACD and RSI convergence shows bearish signals in the short-term.
Big swing in Stochastics doesn't provide a good bearish confirmation for the short-run. Will need to wait and watch.
Good stop loss level at 2500 gives a healthy 4:1 Profit-to-Loss ratio.
Fundamental Analysis
The Ukraine-Russia war boosted the Gold price in Q1 of 2022.
Eased concerns and talks with the Kremlin have eased the Gold price starting in Q2 of 2022.
As gold is considered a safe haven asset during times of turmoil and fear, assuming negotiations continue with the Ukraine-Russia conflict, gold should continue to decline.
Rising inflation has caused commodity prices to sky rocket, and will continue to do so.
Economists forecast sustained economic growth, but much slower growth. The risk is based on the uncertainty of this growth, the rate at which gold price will reduce might reduce causing the estimated duration of this trade to lengthen further than September 2022.