79% of retail accounts lose money when trading CFDs with this provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Regulator asic CySEC fca

Gold bulls in charge of the action again – new yearly highs soon?

June 03, 2020 09:00

Source: Economic Events June 3, 2020 - Admiral Markets' Forex Calendar


As it now is clearly holding above 1,700 USD, the outlook for Gold is strongly bullish. Nevertheless, bulls are now obligated to "deliver" if they want to avoid a deeper short-term correction.

"Deliver" in this context means nothing more than: "push the precious metal above 1,770 USD to new yearly highs". If they fail to do so, the still given bearish divergence in the RSI(14) on a daily time-frame could play out and result in a test of the short-term trend-support around 1,660 USD.

Nevertheless, mid-term our take for the yellow metal stays clearly bullish and we expect rather than later a stint to the all-time high around 1,920 USD.

One potential driver for such a move could be a sustainable drop in 10-year US Treasury yields below 0.60% which seems, in our opinion, only a question of time.

One trigger could be today's release of the ADP employment report. While private businesses in the US fired 20.2 million workers in April, today's numbers are expected only at 9 million lost jobs for May.

Still, any print which comes in worse than the expectation and above 10 million could trigger a next wave of risk-off, bringing US yields under pressure again and driver the precious metal significantly higher with bringing 1,770 USD into our focus.

On the other hand, any positive surprise with a print of less than 9 million fired workers could push Gold again below 1,700 USD:

Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between March 4, 2019, to June 2, 2020). Accessed: June 2, 2020, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, 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!

Download MetaTrader 5 and begin trading today!

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:

  1. This is a marketing communication. The analysis is published for informative purposes only and are 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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 refer that refer to any past performance is not a reliable indicator of future results.
  6. 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.
  7. Any kind of previous or modeled 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.
  8. 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

.


Admiral Markets Group consists of the following firms:
Admiral Markets Pty Ltd
Regulated by the Australian Securities and Investments Commission (ASIC)
CONTINUE
Admiral Markets Cyprus Ltd
Regulated by the Cyprus Securities and Exchange Commission (CySEC)
CONTINUE
Admiral Markets UK Ltd
Regulated by the Financial Conduct Authority (FCA)
CONTINUE
Note: If you close this window without choosing a firm, you agree to proceed under the FCA (UK) regulation.
Note: If you close this window without choosing a firm, you agree to proceed under the FCA (UK) regulation.