Gold buy

Gold has potential for further growth

16 October 2023 215 2
Gold has potential for further growth

Gold prices have risen sharply in recent days and won almost all of the monthly losses back. Following the results of the past week, the yellow metal rose in price by 5.4%. This is the best result since March. The trading session of Friday was especially successful for gold, as the price recorded a growth of almost $60 per ounce. And the growth potential of gold is by no means exhausted.

 

Precious metals are again in high demand. The outbreak of geopolitical tension in the Middle East has brought back investors' interest in gold and other safe haven assets. At the same time, now, after a strong growth momentum, the gold price may slightly correct. But if the situation in the Middle East continues to escalate, the popularity of investments in precious metals will only increase.

 

Analysts pay special attention both to the behavior of gold and the dollar index. The gold prices and the dollar usually have an inverse relationship. However, this time the growth of the dollar didn’t prevent gold from strengthening its positions. It is a sign of strong demand for precious metal. If it manages to consolidate above the important level of 1900, investors will see another sign of steady demand and may increase their investments in gold.

 

Statistics from the US also supported the growth of prices for precious metals. Consumer confidence indices from the University of Michigan declined much worse than expected and reached the lows since May this year. Reduced optimism among the US population regarding the state of the economy may convince the Fed not to tighten monetary policy any further. In this regard, tomorrow's retail sales data will be important. If the figures turn out to be worse than forecasts, gold prices may continue to grow.

 

Now the gold price should stay above 1900. If the corrective pullback fails to break this level from top to bottom, gold will have potential for further growth. The next target for the bulls in this case will be the level of 1940.

 


The following trading strategy can be suggested:

 

Buy gold in the range of 1900–1915. Take profit — 1940. Stop loss — 1885.

 

Traders can also use a Trailing stop instead of a fixed Stop loss at their discretion.

This content is for informational purposes only and is not intended to be investing advice.

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AntonVolkov
AntonVolkov
23 October 2023
(edited)

Boa tarde. O mercado de ouro funciona 24 horas por dia, de segunda a sexta-feira.

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Ralf
Ralf
17 October 2023
(edited)

Bom dia ! Gostaria de fazer uma pergunta, que horas o mercado do ouro abre ? E que horas ele fecha ?Agradeço desde já.

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