As the dollar falls and the US stock market follows

contentUrl

The S&P 500 has exhibited a healthy pullback from all time highs. Is this a normal wave pattern or are we in for a more invasive move? As the dollar falls and the US stock market follows the asset standing to gain the most is – gold.

Gold is looking ready for a correction. Sellers may have finally found a level that they can hold 1422. Now that a few days loss have been recorded we could see a drop in the price of the precious metal. If this continues below 1400 several strategies can be applied on the breakout. We could wait for a breakout and sell the retest. Or, if the level is broken with a solid red candle and no correction is in sight, then a sell during the next day’s trading session would be a good bet.

Another way gold may go is – up. This would be probable if the US bear trend continues. 3 rate cuts are expected this year from the Federal Reserve and that will seriously drop the value of the US dollar. If the price of gold breaks out above 1422 and exhibits spikes in price action similar to what we saw on June 25th, a buy position would be a good idea at this point. Potential upside to gold is 1466.

Crude oil is still undecided about what direction to take. If the S&P market continues to fall, we will see the demand for oil drop as well. A good continuation play would be Crude oil if the correlation holds.

XAUUSD
XAUUSD
Fortrader contentUrl Suite 11, Second Floor, Sound & Vision House, Francis Rachel Str. Victoria Victoria, Mahe, Seychelles +7 10 248 2640568
Economic calendar
Time to start
01:27:00
01:42:00
02:12:00
02:12:01
02:42:00
Share on social networks
Loading...