Hello Everyone,
I need help with key components or factor that that strongly influence rhe movement of Gold price.
I have been focusing on Gold on technical analysis, but I can get a grasp on the fundamental edge.
Is there a fundamental element that has a straight forward impact on gold?
What are the leading indicators?
Thank you all in advance for inputs!!
The best way is to compare it with DXY or Dollar index chart.
Try to study the charts carefully and you will predict future movements.
You can see the reversal on the dxy on Wednesday exactly so 3 days of down movements, on the other side gold was up since Wednesday for 3 days.
Thank you for your reply!
The thing is the Dollar Index and the Gold price trend to move simultaneously…to me this isn’t really an indication for it doesn’t give an heads up on the Gold move!
Or do you have a special way interpret the DXY?
Check the chart and see the signal on Wednesday for the gold.
Understanding fibonacci will help a lot.
Have you tried Fib on both charts(Gold and DXY) ?
Different directions but same movements.
sometimes both of them go on the same direction which causes a lot of confusion for a lot of traders, but if you adjust it to the weekly it will be ok so i do not advice that at all as every pair is different.
check the chart for 3 days both were going up.
that why the gold upward move was unusual because of this correlation.
Gold is one of the safe havens so all major world news can have impact on it.
You need to include interest rates
Try 10YR US T-notes and 30 YR US T-Bonds
In addition to being an ‘alternative’ currency to USD and a safe haven call there is also the fact that it is a commodity so subject to it’s supply/demand.
Two of the largest markets for Gold is China and India.
Demand is higher around Christmas and New Year - Dec and Jan.
the price of gold is determined by geopolitical events, levels of supply and demand and industrial production,
There are several factors that has led to the increase of the price of gold globally. Firstly, almost all the prices of the minerals have increased. The main reason is because, the pandemic affected all the sectors. The economy is so high that all the prices have increased higher than the normal rate. All the countries are affected.
When the spot price of gold is higher than futures price it means there is a supply demand shortage
Favourable swap dealer positioning in the COT.
Indian wedding season
Chinese New Year
Negative real rates of interest
All can play apart in higher gold prices
According to me, there are several reasons why the gold price is higher at the moment. It is because, most of the companies and institutions were under lock down and they were not in operation during the lock down. They resumed to refinery processes hen the demand was very high and they have decided to increase the demand.
there are no leading indicators that move the price of gold (or any other prices)
indicators don’t move prices, they’re moved by prices
There are so many indicators that might be benefiting different types of traders. So, I think it is the trader who has to decide which indicator they want to use. The one that benefits you is obviously the best one you must go with. Do ask for recommendations but make your own decisions.
