Under sharply increased economic uncertainty and geopolitical instability, many traders who are not inclined to take risks consider protecting their investments.
In this case, safe-haven assets come to the fore, which include Gold, the Swiss franc, and the Japanese yen.
And indeed, since 24 February by the closing of the trading day yesterday, gold has gained 1.8%; the EURCHF and GBPCHF currency pairs have decreased by 1.5%; the EURJPY and GBPJPY pairs have decreased by 1.7% thereby proving their supportive functions so far.
Despite some doubts that have recently been arisen regarding the supportive functions of gold during periods of uncertainty and panic, many traders turn to it out of habit.
Gold Trading Strategy
A buy from the market or
BuyLimit near the Fibonacci retracement level (Fibo) of 61.8%
Take Profit: near Fibo at 138.2%.
Stop Loss: below Fibo at 50%. Then, Trailing stop.
Then a buy again at the correction near the Fibo level of 100%.
Take Profit: near Fibo at 138.2% or 161.8%.
Stop Loss: below Fibo at 76.4%. Then, Trailing stop.
Trading at financial markets involves a high level of risk and it can be followed by a loss of investment capital.
The MarketCheese Team is not responsible for a possible loss of Your investment capital.