Gold Futures Technical Analysis: Bears Seize Gold as Price Headed to 1978

In this video technical analysis of gold futures, we delve into the key levels that could significantly impact the price of gold, examining recent price fluctuations and forecasting future market trends.

Key Levels to Watch for gold futures

• 1978 Support Level: A crucial support level that has repeatedly tested its strength in the past. A breakdown below this level could signal a prolonged bearish trend.

• 20 EMA: A moving average commonly utilized as a support and resistance indicator. A significant dip below the 20 EMA could strengthen bear dominance.

• 2035 Resistance Level: Another key resistance level that has proven its resilience in previous price movements. A breakout above this level could spark a renewed bullish momentum.

Recent Price Action: Bears Assert Dominance

Gold’s price has exhibited a bearish trajectory in recent weeks, evident in the sharp decline from the recent high of $2159.2 to $1978. This trend suggests that bears have gained the upper hand in the market.

Gold Futures Price Predictions: Bears Pressuring Towards 1978

Based on our technical analysis and market insights, we anticipate that gold’s price is likely to continue its downward trajectory in the near future. We expect the price to test the 1978 support level and potentially break below it. Such a breakdown could pave the way for a further decline towards $1800 or even lower.

Conclusion: Bears Grip Tightly, 1978 in Sight

With bears firmly in control of the gold market, we believe that the price is likely to consolidate its bearish tendencies in the near term. We anticipate the price to test the 1978 support level and potentially breach it. Should this occur, a further decline towards $1800 or even lower could materialize.

Further Insights and Resources

For additional perspectives on gold futures, we recommend the following resources:

• ForexLive:https://www.forexlive.com: A comprehensive resource for forex and commodities market news and analysis.

• Kitco:https://www.kitco.com: A leading provider of gold, silver, and other precious metals market news, commentary, and pricing.

• GoldPrice.org:https://www.goldprice.org: A reputable platform for gold price data, charts, and analysis.

Risk Disclaimer: Trading gold futures is a speculative endeavor with inherent risks. Please exercise caution and conduct thorough research before making any investment decisions.

This article was written by Itai Levitan at www.forexlive.com.

Forex trading is not just about analyzing charts and making profitable trades. It requires a deep understanding of one’s psychological
state as well. A trader’s mindset plays a crucial role in their success in the
foreign exchange market. In this article, we will explore the basics of forex
trading psychology and the importance of having the right mindset.

Emotions: The Enemy of Successful Traders

Emotions can often cloud a trader’s judgment and lead to
poor decision-making. Fear, greed, and impatience are some of the common
emotions that can derail a trader’s success. Controlling these emotions is
essential to achieve consistent profitability in forex trading.

Understanding Fear and Greed

Fear and greed are often considered two sides of the same
coin in the trading world. Fear can make traders hesitant, causing them to miss
out on potential profitable opportunities. On the other hand, greed can push
traders to take excessive risks, resulting in significant losses. It is
important to strike a balance between these emotions to avoid making impulsive
decisions.

Patience: The Virtue of Successful Traders

Forex trading requires patience. Waiting for the right
opportunity to enter or exit a trade is crucial for success. Impatient traders
tend to jump into trades without proper analysis, increasing the chances of
losses. Developing patience is essential to avoid falling into this trap.

Dealing with Losses

Losses are an inevitable part of forex trading. Even the
most successful traders face losing trades. It is important to accept losses as
part of the process and not let them affect your confidence. Learning from
losses and adjusting trading strategies accordingly is the key to long-term
success.

Building Discipline and Consistency

Discipline and consistency are fundamental to successful
forex trading psychology. Following a well-defined trading plan and sticking to
it, regardless of emotions, is crucial. Deviating from the plan due to fear or
greed can lead to poor decision-making and ultimately, losses.

Developing a Positive Mindset

Having a positive mindset is crucial for success in forex
trading. A negative mindset can cloud judgment and lead to self-doubt.
Believing in one’s abilities and having confidence in the trading strategies is
essential for overcoming challenges and achieving consistent profitability.

The Importance of Self-Reflection

Self-reflection is an integral part of improving forex
trading psychology. Regularly analyzing past trades, identifying mistakes, and
working on personal growth are essential steps towards becoming a better
trader. It allows traders to learn from their experiences and continuously
improve their skills.

Seeking Support and Education

Forex trading can be a solitary activity, but seeking
support and education is vital for maintaining a healthy mindset. Joining
trading communities, attending seminars or webinars, and seeking guidance from
experienced traders can provide valuable insights and help traders overcome
psychological obstacles.

In conclusion, forex trading psychology plays a significant
role in a trader’s success. Managing emotions, developing patience, building
discipline, maintaining a positive mindset, and seeking continual improvement
through self-reflection and education are key elements to thrive in the forex
market. By mastering the psychological aspects of trading, traders can enhance
their overall performance and achieve long-term profitability.

This article was written by FL Contributors at www.forexlive.com.

The first ECB rate cut is baked in for April currently but market participants are not seeing the SNB move as quickly as their usual counterpart. The latest Reuters poll on economists is only showing the Swiss central bank to keep its key policy rate unchanged until at least September next year.

That comes despite Swiss inflation looking in much better shape than the Eurozone at the moment, as seen here.

Of note, the poll shows that 21 of 31 economists (nearly 70%) expect the SNB to keep rates unchanged until Q3 2024 with only 13 of 29 economists polled predicting that the first rate cut will only come in December next year.

This article was written by Justin Low at www.forexlive.com.

Inflation is a critical factor that can have a significant
impact on investment portfolios. It refers to the general increase in prices over time,
resulting in the decline in purchasing power of money. In this article, we will
discuss the ripple effects of inflation on investment portfolios.

1. Decreased Real Returns

One of the primary ripple effects of inflation on investment
portfolios is the decreased real returns. Inflation erodes the value of money,
leading to a decrease in purchasing power. For example, if an investment earns
a nominal return of 5% per year but the inflation rate is 3%, the real return
would only be 2%. This implies that the investor’s actual purchasing power has
increased by just 2%.

2. Impact on Fixed-Income Investments

Inflation also affects fixed-income
investments such as bonds
and Treasury bills. These investments provide a fixed interest rate, which
means that as inflation rises, the real return on these investments decreases.
Investors holding fixed-income investments may find it challenging to maintain
their standard of living as the purchasing power of their interest income
declines.

3. Volatility in Equity Markets

Inflation can lead to increased volatility in equity
markets. Uncertainty regarding future inflation levels can create market
fluctuations and affect stock prices. Companies may face higher costs for raw
materials, wages, and other inputs, which can reduce profitability. As a
result, investors may experience greater market volatility, making it crucial
to diversify their portfolios and mitigate potential risks.

4. Impact on Real Assets

Real assets such as real estate, commodities, and
infrastructure can be directly affected by inflation. During times of high
inflation, the value of real assets tends to rise. Real estate prices may
increase, and commodities like gold, oil, and agricultural products often see
price spikes. Investors who hold real assets within their portfolios may
benefit from these price increases, as they can provide a hedge against
inflation.

5. High-Interest Debt

Inflation affects borrowers and lenders differently.
Borrowers benefit from inflation as the value of their debts decreases over
time. For example, if a borrower has a fixed-rate mortgage, the real burden of
repaying the loan decreases as inflation rises. Conversely, lenders may suffer
as the purchasing power of the interest income earned from loans decreases.
Investors holding high-interest debt securities may witness a decline in the
real value of their investments.

Conclusion

Inflation can have far-reaching consequences on investment
portfolios. It reduces real returns, impacts fixed-income investments, creates
volatility in equity markets, influences the value of real assets, and affects
the dynamics of high-interest debt. Investors must carefully consider the
effects of inflation when constructing their portfolios to mitigate risks and
maximize returns in an inflationary environment.

This article was written by FL Contributors at www.forexlive.com.

Cryptocurrencies have been a hot topic in financial markets, garnering both
avid supporters and ardent skeptics. The rapid rise of Bitcoin and other
digital currencies has led to intense debates over whether they are a mere
bubble waiting to burst or a new standard in the world of finance. This article
aims to analyze the arguments on both sides and provide an informed perspective
on the matter.

The Bubble Argument

Critics argue that cryptocurrencies are nothing more than a
speculative bubble reminiscent of the dot-com era. They highlight the volatile
nature of these digital assets, with prices soaring and plummeting within short
periods. Critics also point out the absence of intrinsic value backing most
cryptocurrencies, suggesting that their worth is based solely on speculation
and hype.

Moreover, the proliferation of Initial Coin Offerings
(ICOs), where companies raise funds by issuing their own digital tokens, is seen as a symbol of the cryptocurrency bubble. Skeptics
argue that many ICOs lack a solid business model or product, relying solely on
the investor frenzy surrounding cryptocurrencies.

The New Standard Argument

On the other side, proponents assert that cryptocurrencies
represent a new standard in the financial world. They argue that these digital
assets offer several advantages over traditional fiat currencies. Firstly,
cryptocurrencies operate through decentralized blockchain technology, providing
transparency and reducing the need for intermediaries like banks. This opens up
possibilities for efficient and secure transactions across borders.

Additionally, proponents emphasize the potential for
cryptocurrencies to empower the unbanked population worldwide. With
approximately 1.7 billion adults lacking access to basic financial services,
cryptocurrencies can bridge this gap by enabling individuals to participate in
the global economy without relying on traditional banking systems.

Furthermore, advocates believe that the underlying
technology of cryptocurrencies, blockchain, has vast applications beyond
currency. Blockchain technology has the potential to revolutionize sectors such
as supply chain management, healthcare, and voting systems, among others. This
versatility makes cryptocurrencies more than just a speculative asset but
rather a transformative force in various industries.

A Balanced Perspective

To form a well-rounded view, it is important to consider
both arguments. While there are valid concerns about the volatility and lack of
intrinsic value in cryptocurrencies, their potential benefits cannot be
ignored. The technology behind cryptocurrencies has already demonstrated its
potential to disrupt existing industries and improve efficiency.

However, it is crucial to distinguish between legitimate
projects with solid fundamentals and those mere speculative ventures fueled by
hype. Extensive research and due diligence should guide investors in
distinguishing worthwhile investments from potential pitfalls.

In conclusion, cryptocurrencies remain a contentious topic
in today’s financial landscape. While the bubble argument raises valid
concerns, proponents firmly believe in the paradigm shift brought about by
these digital assets. As the industry matures and regulations are established,
only time will tell whether cryptocurrencies will stand as a bubble waiting to
burst or become the new standard in finance.

This article was written by FL Contributors at www.forexlive.com.