MG Network

something big isHappening!

In the mean time you can connect with us with via:

Copyright © Money Grows Network | Theme By Gooyaabi Templates

Money Grows Network

Archive

Powered by Blogger.

Welcome To Money Grows Network

Verified By

2006 - 2019 © www.moneygrows.net

Investments in financial products are subject to market risk. Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only.

Popular

Pages

Expert In

Name*


Message*

Gold made a Christmas present

The precious metal has remained amazingly stable for a long time amid the rally of the US stock market and an increase in global risk appetite, on the eve of Christmas, gold gave its fans a pleasant surprise. The precious metal returned to the psychologically important mark of $1,500 per ounce, sensitively reacting to the correction of the S&P 500 by 1.4%. Although the stock index movement was more technical in nature and was due to the closure of speculative longs, nevertheless the XAU/USD rally showed where it could look for help in 2020. The most powerful driver for its growth next year will most likely be the pullback of the US stock market .

The S&P 500 and other US stock indexes look overbought. Investors are too aggressive in winning back the news that Washington and Beijing will soon sign a trade agreement as part of the first phase. At the same time, an unexpected reduction in orders for durable goods for Bloomberg experts suggests that the US economy is too dependent on consumer sentiment. Neither investments, nor other components of GDP are capable of supporting the current growth rate in 2020. If they slow down, the idea of a proactive reduction in the federal funds rate will return to the Fed table, which is a bullish factor for precious metals. By the way, the derivatives market, following the release of data on durable goods orders, increased the chances of monetary expansion in December 2020 from 45% to 52%.

The dynamics of gold and the Dow Jones

analytics5e0402554f156.jpg

There is no certainty in the most problematic issues for the world economy in 2019. Despite the Conservative party winning the parliamentary elections in Britain, the idea of a disorderly Brexit has not disappeared. On the contrary, a resuscitation caused GBP/USD quotes to fall below the bottom of the 30th figure. Let Donald Trump claim that a trade agreement between Washington and Beijing will be signed soon, until this document is endorsed. In addition, the question is in limbo about how negotiations will proceed in the framework of a second phase. A substantial part of import duties remains in force, and what will the United States demand from China in order to abolish them?

If we add a Senate vote on the impeachment of Trump and the US presidential election to the existing risks, then the reason for the stability of gold against an unfavorable background becomes clear. Yes, the decline in the global negative debt market from $17 trillion in the summer to $11 trillion triggered a wave of correction to the bullish XAU/USD trend, but who knows what will really happen to the global economy in 2020. If its growth continues to shrink, central banks will be forced to return to the idea of easing monetary policy, which will lower bond yields and support precious metals.

Technically, gold managed to gain a foothold within the range of the previous consolidation of $1475-1515 per ounce. In case of a breakthrough of its upper border, the "Expanding Wedge" pattern will be activated. As a result, the risks of implementing the target by 161.8% according to the "Crab" pattern will increase.

The material has been provided by InstaForex Company - www.instaforex.com