The trading strategy for Gold in the upcoming week
Retail sales data for June and China's second-quarter Gross Domestic Product (GDP) growth data will be closely watched by market participants in the early trading hours of the Asian session on Monday. China's economy has lost momentum after a strong first quarter driven by economic reopening. The People's Bank of China has taken actions, including policy rate cuts, to help the economy regain its footing. On a quarterly basis, GDP is forecasted to record a 0.5% increase in the second quarter, down from 2.2% in the first quarter. Stronger-than-expected GDP data from China, the world's largest consumer of gold, could potentially boost XAU/USD as investors remain hopeful about optimistic demand prospects.
On Tuesday, the U.S. will release Retail Sales data for June, forecasted to increase by 0.5% after expanding by 0.3% in May. While this data is unlikely to change the market's pricing of Fed interest rate prospects, a strong print could help the USD find demand with an immediate reaction.
Initial Jobless Claims and Existing Home Sales data will be included in the U.S. economic report on Thursday.
The Fed's blackout period will begin on Saturday, July 15th, and policymakers will not be able to speak about monetary policy until the interest rate announcement on July 26th. Therefore, technical developments may drive the action of XAU/USD in the coming week.
Trading strategy:
SELL XAU/USD around the price range of 1965-1970.
Stop Loss: 1974.
Take Profit 1: 1960.
Take Profit 2: 1955.
Take Profit 3: 1950.
BUY XAU/USD around the price range of 1940-1945.
Stop Loss: 1937.
Take Profit 1: 1955.
Take Profit 2: 1960.
Take Profit 3: 1965.
Note:
Trade with 1% of your account per trade to ensure capital management principles.
Do not exceed 5% of your account capital within the nearest 10 price levels.
Always set Stop Loss (SL) in all situations and pay attention to trades based on your current capital.
On Tuesday, the U.S. will release Retail Sales data for June, forecasted to increase by 0.5% after expanding by 0.3% in May. While this data is unlikely to change the market's pricing of Fed interest rate prospects, a strong print could help the USD find demand with an immediate reaction.
Initial Jobless Claims and Existing Home Sales data will be included in the U.S. economic report on Thursday.
The Fed's blackout period will begin on Saturday, July 15th, and policymakers will not be able to speak about monetary policy until the interest rate announcement on July 26th. Therefore, technical developments may drive the action of XAU/USD in the coming week.
Trading strategy:
SELL XAU/USD around the price range of 1965-1970.
Stop Loss: 1974.
Take Profit 1: 1960.
Take Profit 2: 1955.
Take Profit 3: 1950.
BUY XAU/USD around the price range of 1940-1945.
Stop Loss: 1937.
Take Profit 1: 1955.
Take Profit 2: 1960.
Take Profit 3: 1965.
Note:
Trade with 1% of your account per trade to ensure capital management principles.
Do not exceed 5% of your account capital within the nearest 10 price levels.
Always set Stop Loss (SL) in all situations and pay attention to trades based on your current capital.
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