February 26th 2020
Fears over how long the coronavirus will persist, and how big the global economic disruptions will be, keep Gold in high demand. This precious metal retreated from a fresh 2020 peak, but more upside is likely with traders eyeing the $1,700 mark next. Singapore industrial production surprised to the upside, but the rise in new coronavirus cases overshadowed the positive economic report. Where will Gold move to next? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Hong Kong is in a recession, as confirmed by today’s fourth-quarter GDP data. The data came in marginally better than the economic contraction predicted by economists. Gold has established a new horizontal support area from where more upside is expected. Bullish momentum remains strong, how long will it take this precious metal to take out $1,700. or will bears prevent an extension of the rally? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for Gold trades:
- UK BRC Shop Price Index: The UK BRC Shop Price Index for February decreased by 0.6% annualized. Economists predicted a decrease of 0.2%. Forex traders can compare this to the UK BRC Shop Price Index for January, which decreased by 0.3% annualized.
- Australian Construction Work Done: Australian Construction Work Done for the fourth quarter decreased by 3.0% quarterly. Economists predicted a decrease of 1.0% quarterly. Forex traders can compare this to Australian Construction Work Done for the third-quarter, which decreased by 0.4% quarterly.
- Singapore Industrial Production: Singapore Industrial Production for January increased by 18.2% monthly and by 3.4% annualized. Economists predicted an increase of 0.6% and a decrease of 5.3%. Forex traders can compare this to Singapore Industrial Production for December, which increased by 6.3% monthly, and which decreased by 3.7% annualized.
- Japanese Supermarket Sales: Japanese Supermarket Sales for January decreased by 2.0% annualized. Forex traders can compare this to Japanese Supermarket Sales for December, which decreased by 3.3% annualized.
- French Consumer Confidence: French Consumer Confidence for February was reported at 104. Economists predicted a figure of 103. Forex traders can compare this to French Consumer Confidence for January, which was reported at 104.
- Hong Kong GDP: The Hong Kong GDP for the fourth quarter decreased by 0.3% quarterly and by 2.9% annualized. Economists predicted a decrease of 0.4% quarterly and 3.0% annualized. Forex traders can compare this to the Hong Kong GDP for the third quarter, which decreased by 0.4% quarterly and by 2.9% annualized.
- US New Home Sales: US New Home Sales for January are predicted to increase by 2.7% monthly to 713K new homes. Forex traders can compare this to US New Home Sales for December, which decreased by 0.4% monthly to 694K new homes.
Should price action for Gold remain inside the or breakout above the 1,633.00 to 1,661.00 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,651.00
- Take Profit Zone: 1,754.00 – 1,795.25
- Stop Loss Level: 1,623.50
Should price action for Gold breakdown below 1,633.00 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,623.50
- Take Profit Zone: 1,586.00 – 1,593.30
- Stop Loss Level: 1,633.00
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Do you hedge your forex trading account properly and protect it from downside risk? Find out how to properly secure your forex investment at PaxForex where you can grow your portfolio trade-by-trade!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5