TENSION BETWEEN TWO NUCLEAR-ARMED COUNTRIES- ADDING A TRADE
The market is closely watching the building tension between two nuclear-armed countries India and Pakistan
As we are preparing this report gold is trading at $1325 while white metal is hovering around $15.800.We have seen the yellow metal to drop below $1318 due to the strong DXY movement which we have witnessed today. This week we have also seen the U.S equity market to reach their three-month highs along with the rising crude oil prices which are trading above $57.00 a barrel.
Europian traders are still worried due to the ongoing Brexit dispute however now it seems U.K prime minister Theresa may and parliament have finally agreed to extend the Brexit deadline only if the deal will not be settle on the fixed deadline, The other market news which is not favoring gold bulls is that the German government today auctioned its 10-year bonds for an average yield of just 0.12% which is the lowest in 3 years which is a sign of low inflation expectations in the world.
The market is closely watching the building India-Pakistan tensions but the impact on the market is almost negligible due to the conflict between the two nuclear-armed countries. The India-Pak war escalated when India bombed a terrorist camp called jaish-e-Mohammed in Pakistan with Pakistan then retaliating by shooting down two Indian warplanes where one Indian pilot has been taken on in a custody by Pak army, In a counter attack India also shot down Pakistan air force most advanced warplane F16 however this all started after Pulwama attack when a militant who was a member of terrorist camp in Pakistan bombed Indian paramilitary police with a suicide car which killed 41 members of CRPF in a horrible manner.U.S. Secretary of State Mike Pompeo,U.K. Prime Minister Theresa May also called for de-escalation, stating that “U.K. is deeply concerned about rising tensions between India and Pakistan and urgently calls for restraint on both sides to avoid further escalation.we believe the building tension between two countries does not seem to escalate however if If India and Pakistan’s relationship continues to deteriorate and there is a risk of war, markets will speak up
We are going long in gold but that doesn't mean our medium-term outlook has been changed that just means the very short-term outlook for gold improved based on yesterday’s second close above 2019 high and today’s pre-market upswing, but this didn’t change the medium-term outlook at all instead when prices will move higher as we are hoping for more naive investors to join in this parabolic run we will simply close our long position which will help us to make immense profit in our upcoming short position due to enormous reward and little risk
Currency Pair: XAUUSD ( Gold )
Buy Stop Entry Price:1325
Take Profit: 1365
Stop Loss:1290(we will reduce the stop loss points once positions will be more favorable)
Risk/Reward: 1:1
(we can adjust (limit, close or even reverse) the position before this price level is reached
As we are preparing this report gold is trading at $1325 while white metal is hovering around $15.800.We have seen the yellow metal to drop below $1318 due to the strong DXY movement which we have witnessed today. This week we have also seen the U.S equity market to reach their three-month highs along with the rising crude oil prices which are trading above $57.00 a barrel.
Europian traders are still worried due to the ongoing Brexit dispute however now it seems U.K prime minister Theresa may and parliament have finally agreed to extend the Brexit deadline only if the deal will not be settle on the fixed deadline, The other market news which is not favoring gold bulls is that the German government today auctioned its 10-year bonds for an average yield of just 0.12% which is the lowest in 3 years which is a sign of low inflation expectations in the world.
The market is closely watching the building India-Pakistan tensions but the impact on the market is almost negligible due to the conflict between the two nuclear-armed countries. The India-Pak war escalated when India bombed a terrorist camp called jaish-e-Mohammed in Pakistan with Pakistan then retaliating by shooting down two Indian warplanes where one Indian pilot has been taken on in a custody by Pak army, In a counter attack India also shot down Pakistan air force most advanced warplane F16 however this all started after Pulwama attack when a militant who was a member of terrorist camp in Pakistan bombed Indian paramilitary police with a suicide car which killed 41 members of CRPF in a horrible manner.U.S. Secretary of State Mike Pompeo,U.K. Prime Minister Theresa May also called for de-escalation, stating that “U.K. is deeply concerned about rising tensions between India and Pakistan and urgently calls for restraint on both sides to avoid further escalation.we believe the building tension between two countries does not seem to escalate however if If India and Pakistan’s relationship continues to deteriorate and there is a risk of war, markets will speak up
We are going long in gold but that doesn't mean our medium-term outlook has been changed that just means the very short-term outlook for gold improved based on yesterday’s second close above 2019 high and today’s pre-market upswing, but this didn’t change the medium-term outlook at all instead when prices will move higher as we are hoping for more naive investors to join in this parabolic run we will simply close our long position which will help us to make immense profit in our upcoming short position due to enormous reward and little risk
Currency Pair: XAUUSD ( Gold )
Buy Stop Entry Price:1325
Take Profit: 1365
Stop Loss:1290(we will reduce the stop loss points once positions will be more favorable)
Risk/Reward: 1:1
(we can adjust (limit, close or even reverse) the position before this price level is reached