How Are Traders Preparing for the 2020 US Election?

The 2020 US election has amplified an almost unprecedented level of uncertainty in the financial markets.

With a global pandemic, a healthcare crisis, and a weakening USD, you can be sure that the candidates are running against a backdrop of market volatility. And their policy decisions will create significant movements across a wide spectrum of sectors, should they win.

So how do traders prepare during these volatile times leading up to the 2020 US election?

The short answer is they position themselves to benefit from the market movements they predict may be coming up ahead, regardless of whether the market will move up or more…

Gold has hit new all-time highs: Is this a bubble or just a stop before hitting 3000 USD?

2020 has by far been difficult for most people, but it’s definitely been a great year for gold and gold owners. Gold has seen exponential growth to the point where its holders are in a state of euphoria with the feeling that they can do no wrong and their safe haven will last forever.

Before we get ahead of ourselves, let’s not forget the Gold Rush of 2011. Gold was on the pages of magazines and newspapers, it was the talk of taxi drivers, personal trainers and hairdressers. Gold investments were indeed the golden opportunity. But over the months and years the more…

GOLD (XAUUSD) Weekly Forecast (15/01/2020-21/01/2020)

News and Data:

– January 08: US ADP Non-Farm Employment Change 202K vs 160K expected
– January 10: US Non-Farm Employment Change 145K vs 162K expected
– January 14: US CPI M/M 0.2% vs 0.2% expected
– January 14: US Core CPI M/M 0.1% vs 0.2 expected

Market Update:

Gold prices rose to seven-year highs around $1,613 an ounce last week after Iran attacked the US military bases in Iraq. However, gold is struggling to find its bullish momentum at the start of this week and apparently the prices has softened to around $1,540 an ounce as a reflection of geographical tension ease with Iran, and the signing of a phase-one trade agreement between the United States and China which has taken place nearly two years in the making. The details of phase-one agreement are unconfirmed but according to experts the agreements are split into nine chapters dealing with issues more…

GOLD (XAUUSD) Weekly Forecast (08/01/2020 – 14/01/2020)

News and Data:

  • CNY Caixin Manufacturing PMI 51.5 vs 51.7 expected
  • US ISM Manufacturing PMI 47.2 vs 49 expected
  • US FOMC Meeting Minutes expected to cut interest rate 2 times in 2020
  • US ISM Non-Manufacturing PMI 55 vs 54.5 expected

Market Update:

Gold price jumped over $1,600 per ounce this morning upon the news that AL Asad airbase in western Iraq has come under retaliatory attack from Iran. This action is viewed as the direct attack on American forces located in the region. Following the news of the attack, stocks prices dropped but oil and GOLD rose. Gold has bounced back around more…

Probably, USD has stopped its retreat

USA

EURUSD

The pair started the week and continued its serious growth trend, but it could not keep this pace, having stumbled on Thursday. As a result, Euro dropped from the resistance area around 1.0760 almost by a figure. However, dollar bulls could not use the situation to the full extent: the pair stabilized and ended the week a bit above 1.07, actually where it has started the week. On the back of the above process, there was another series of highs renewals of the US stock indices. On Thursday and Friday, those processes a bit slowed down due to profit fixing, which more…