Source: Economic Events August 19, 2020 - Admiral Markets' Forex Calendar
After the massive volatility in Gold last week on Tuesday, with the yellow metal losing more than 5%, or dropping more than 100 USD per ounce, the most in one day since 2013, markets have calmed down a little.
In fact, one week later, Gold bulls pushed the precious metal back above 2,000 USD and chances for further gains in the near term seem elevated, even though technically we consider the short-term picture neutral between last week's low around 1,865 and the current yearly high around 2,075 USD.
What will certainly be of interest for Gold is what US yields "deliver".
If we get to see further rising yields, a test of the region around 1,865 and probably even a drop lower remains an option in the days to come.
If, on the other hand, US yields drop back towards 0.50% again and even lower, which is possible, a run to new highs for Gold in the upcoming days will be a serious option. This is due to the fact that such a drop would increase the chances of real US yields dropping below -1% once again, making a stint as high as 2,500/2,600 USD in the next months a serious option.
That may be especially true if the FOMC Minutes in the evening show any signs or emphasis from FED officials to establish a rate cap if US yields start rising too strongly.
In general, the bullish sequence remains intact as long as we trade above 1,660 USD:
Source: Admiral Markets MT5 with MT5SE Add-on Gold Daily chart (between April 05, 2019 to August 18, 2020). Accessed: August 18, 2020 at 10:00 PM GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of Gold fell 10.4%. In 2016, it increased by 8.1%. In 2017, it rose 13.1%. In 2018, it fell 1.6%, and in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.
Discover the world's #1 multi-asset platform
Admiral Markets offers professional traders the ability to trade with a custom, upgraded version of MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level. Experience benefits such as the addition of the Market Heat Map, so you can compare various currency pairs to see which ones might be lucrative investments, access real-time trading data, and so much more. Click the banner below to start your FREE download of MT5 Supreme Edition!
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The analysis is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
- Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter "Author") based on the Author's personal estimations.
- To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures that refer to any past performance is not a reliable indicator of future results.
- The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
- Any kind of previous or modelled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.