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Gold: June 01 review (Intraday and STBT Gold strategy)

Gold: June 01 review (Intraday and STBT Gold strategy)

GOLD FUTURES (AUG 2020) COMEX:GCQ2020

Gold: June 01 review

Fundamental Strategy:

Gold and Silver prices increased more than 3% and 9% respectively in last four trading sessions.

Industrial metals like Silver prices increased more than 62% in last three months, while the prices was traded @11.680 range in mid March.

Gold and Silver prices ratio made a three month low@94.91 range today against made a high @126.56 range in mid march.

Gold prices traded $1789.00-$1668.40 range in last two months.

In the last week, Fed chairperson Powell's comments regarding monetary policy and keep steady to near term zero fed fund rate decisions.

Quantitative easing ( QE ) is a monetary policy whereby a central bank buys government bonds or other financial assets in order to inject money into the economy to expand economic activities.

From 2008 to 2014, we have been seen QE1, QE2 and QE3 stages, as we called easily as a "Fed bond buying program"?

Does QE4 stage will start soon?

If QE4 program will start in near futures , we will expect all profits washed out(last 3 months) in Gold and Silver .

Long term investors will keep an eye on second week of May to decide Fed fund rate decisions.

Investors also feared for US-China trade deal and how to US treated with Hong Kong in near future? But US president Donald Trump began the process of ending treatment with Hong Kong and later the some relief the process of trade deal between world's two largest economies.

Then, all Asian Indexes futures traded more than +2% to 3% positive today.

Gold and US Dollar prices traded opposite directions at this type of uncertainty.

Technical Strategy:

Gold futures , newly August contract traded $1760.00 range, up +0.51% at early European hours.

For trading point of view, above $1760.00 range, you will see $4-6 up trend but keep max R1 $1789.00 range(Max Resistance Level ). If price break this level, next TGT above $1800+.

On the opposite directions, intraday point of view, near term S1 $1725.30 (Last Friday's low), if break this level, you will see S2 $1701.60 (Last week low) but major Support level $1668.40(21st April's low).

Expectation of major profit booking in Hedge funds in this week. more than -2% and -3.5% respectively down in Gold and Silver in this week.

Before European markets open, make short positions in Gold .

For intraday and STBT strategy for Gold is given below:

Entry point - $1760.00 - $1764.90 range

and keep R1 $1789.00

and wait S1 $1725.30(Friday's low)

and wait S2 $1701.60(Last week's low)

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