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Global Financial Engineering Weekly Commentary for Gold Futures by Dr. Glen Brown

Gold futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of gold at a predetermined price on future delivery date. Gold futures give companies involved in the precious metals industry a way to hedge their gold price risk on an expected future purchase or sale of gold. They also allow investors to participate in an easy and convenient alternative to traditional means of investing in gold. Gold can be considered the ultimate store of value. Buying gold futures contracts as an anti-inflation hedge may be their primary use. The liquidity of the gold futures contract often makes it easier to take advantage of opportunities in nearly all market conditions. (Source: https://www.schwab.com/futures/gold)

At Global Financial Engineering, Inc. we believe that each trade should have a name. Hence within our trading models, we have four (4) types of trades that we execute daily.

These are:

  • Global Micro-Trend Trades
  • Global Short-Term Trend Trades
  • Global Medium-Term Trend Trades
  • Global Long-Term Trend Trades.

The Global Micro-Trend Trades are executed by our Proprietary Global Algorithmic Trading Software (GATS) using Sub-Systems: GATS1, GATS5, GATS15, and GATS30.

The Global Short-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software (GATS) using Sub-System: GATS60.

The Global Medium-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software (GATS) using Sub-System: GATS240.

The Global Long-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-Systems: GATS1440, GATS10080 and GATS43200.

Our Global Algorithmic Trading Software (GATS240) on January 21, 2023, indicates the following for Gold Futures

These are:

  • Gold Futures Long Term Trend (LTT): Bullish
  • Gold Futures Medium Term Trend (MTT): Bullish
  • Gold Futures Short Term Trend (STT): Bullish
  • Gold Futures Micro Trend (MT): Bullish

The bullish micro trend was able to able to found support at Global Support 25, Global Support 50 and Global Support 89 on GATS240. However, further analysis reveals a bullish market structure on GATS240. Our preference is to maintain a bullish bias on Gold Futures within the short term and execute a Bullish Short Term trades.

Potential Trade Entry:

  • Global Buy Entry Signal for Gold Futures: 1931.00
  • Global Trailing Stop Distance for Gold Futures: 1931.00 – (9 x 8.9536) =80.5824
  • Global Target Profit for Gold Futures: 1931.00 + (3 x 9 x 8.9536) = 2172.7472
  • Current Price for Gold Futures: 1926.63

It is important to monitor price action when price reaches $2000 and act upon any 58 Reversal Signals.

We are considering the high of $2075.21 on August 02, 2020, and $2070.40 on March 06,2022 to be a major resistance zone.

For many years traders and investors use gold as an inflation hedge. However the aggressive interest rate hikes by central bankers around the world is having a negative effect on gold price.

RISK WARNING!

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends, or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute, Inc. or Global Financial Engineering, Inc. to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives, or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances

Global Financial Engineering Weekly Commentary for Gold Futures by Dr. Glen Brown
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Global Financial Engineering Weekly Commentary for Gold Futures by Dr. Glen Brown

Gold futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of gold at a predetermined price on future delivery date. Gold futures give companies involved in the precious metals industry a way to hedge their gold price risk on an expected future purchase or sale of gold. They also allow investors to participate in an easy and convenient alternative to traditional means of investing in gold. Gold can be considered the ultimate store of value. Buying gold futures contracts as an anti-inflation hedge may be their primary use. The liquidity of the gold futures contract often makes it easier to take advantage of opportunities in nearly all market conditions. (Source: https://www.schwab.com/futures/gold)
At Global Financial Engineering, Inc., we believe that each trade should have a name. Hence within our trading models, we have four(4) types of trades that we execute daily.

These are:

Global Micro-Trend Trades
Global Short-Term Trend Trades
Global Medium-Term Trend Trades
Global Long-Term Trend Trades.

The Global Micro-Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #0,#1 & #2 which trade in the direction of our Four Hour Time Bars(FHTB) with a Trailing Stop Loss given by five(5) times the Four Hour Average True Range(FHATR) using period 25.

The Global Short-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #3  which trade in the direction of our Daily Time Bars(DTB) with a Trailing Stop Loss given by five(5) times the Daily Average True Range(DATR) using period 25.

The Global Medium-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #4 which trade in the direction of our Weekly Time Bars(WTB) with a Trailing Stop Loss given by five(5) times the Weekly Average True Range(WATR) using period 25.

The Global Long-Term Trend Trades are executed by our Proprietary Global Algorithmic Trading Software(GATS) using Sub-System #5 & #6 which trade in the direction of our Monthly Time Bars(MTB) with a Trailing Stop Loss equal to five(5) times the Monthly Average True Range(MATR) using period 25.

Our Global Algorithmic Trading Software (GATS) #3 on August 14, 2022, indicates the following for Gold Futures

Gold Futures Long Term Trend (LTT): Bearish
Gold Futures Medium Term Trend (MTT): Bearish
Gold Futures Short Term Trend (STT): Bullish
Gold Futures Micro Trend (MT): Bullish

We are bullish on Gold Futures within the short term and hence decide to execute a Bullish Short Term trade with a potential trade entry signal as follows:

Global Entry Signal for Gold Futures: 1802.65
Global Trailing Stop Distance for Gold Futures: 1689.192
Global Target Profit for Gold Futures: 2143.024
Current Price for Gold Futures: 1802.26

RISK WARNING!

There is a substantial risk of loss in futures and Forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends, or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by Global Accountancy Institute, Inc. or Global Financial Engineering, Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives, or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.