empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

18.03.202009:24 Forex Analysis & Reviews: Why does gold fall and how to make money on it?

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Exchange Rates 18.03.2020 analysis

Good day, dear traders! I present to you the trading idea of lowering the rate of gold.

In my recent reviews, I repeatedly mentioned the giant gold auction, which became most clearly visible at the beginning of this week, when gold went through a record 12000p in one day. Many do not understand what this is connected with, so I will explain. Gold is an indicator of dollar fears, and investors buy it for dollars in order to survive difficult times. So it was until the beginning of March, when only the coronavirus scared everyone. But then a very interesting event happened - the collapse of stock markets. And now imagine such a situation. You sit in gold, do not buzz, and suddenly you see that the stock assets that you dreamed of buying and holding began to cost 2 times cheaper. What are you going to do?

You will sell gold for dollars, as cheaply as possible, buy the fund and sit in these papers forever. That is why the Americans zeroed the rate so that people on cheap loans would buy American stocks for a penny, to keep them from collapsing. From this point of view, a drop in gold looks the most logical, and most importantly - fundamentally justified. However, this process is not over at all, and the transition of dollars from gold to the stock market will continue, at least, from our trading method point of view, until the breakdown of the lower border of the monthly auction at 1440.

D1:

Exchange Rates 18.03.2020 analysis

H1:

Exchange Rates 18.03.2020 analysis

American sessions are shown in green.

Success in trading and control the risks!

Andrey Shevchenko
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off