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.
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 December 25, 2022, indicates the following for Gold Futures
Gold Futures Long Term Trend (LTT): Bearish
Gold Futures Medium Term Trend (MTT): Bullish
Gold Futures Short Term Trend (STT): Bullish
Gold Futures Micro Trend (MT): Bearish
The bearish micro trend was able to break 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: 1799.46
Global Trailing Stop Distance for Gold Futures: 1799.64 – (6 x22.4850)=1664.49
Global Target Profit for Gold Futures: 1799.46 + (3 x 6 x 22.4850) = 2204.19
Current Price for Gold Futures: 1798.64
It is important to monitor price action at 1825.10 and act upon any 48 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.
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.