Source: PaxForex Premium Analytics Portal, Fundamental Insight
Australian TD Securities Inflation for February increased by 0.4% monthly. Forex traders can compare this to Australian TD Securities Inflation for January, which rose 0.9% monthly.
The New Zealand ANZ Commodity Price Index for February rose 1.3% monthly. Forex traders can compare this to the New Zealand ANZ Commodity Price Index for January, which decreased by 0.1% monthly.
The Swiss CPI for February is predicted to increase by 0.4% monthly by 3.1% annualized. Forex traders can compare this to the Swiss CPI for January, which rose by 0.6% monthly and 3.3% annualized.
The UK Construction PMI for February is predicted at 49.1. Forex traders can compare this to the UK Construction PMI for January, reported at 48.4.
Eurozone Sentix Investor Confidence for March is predicted at -6.3. Forex traders can compare this to Eurozone Sentix Investor Confidence for February, reported at -8.0.
Eurozone Retail Sales for January are predicted to increase by 1.0% monthly and contract by 1.8% annualized. Forex traders can compare this to Eurozone Retail Sales for December, which decreased by 2.7% monthly and by 2.8% annualized.
US Factory Orders for January are predicted to drop by 1.8% monthly. Forex traders can compare this to US Factory Orders for December, which rose by 1.8% monthly.
The Canadian Ivey PMI for February is predicted at 55.9. Forex traders can compare this to the Canadian Ivey PMI for January, reported at 60.1.
Inflation prints higher than hoped-for figures, and central banks will raise interest rates further, especially in the US. While a stronger US Dollar is bearish for gold, the negative economic impact starts to outweigh this bearishness. It allows gold to attract safe-haven investors, led by central banks, who have been leading buyers over the past twelve months. Gold could end 2023 at fresh all-time highs, allowing patient investors to scale their long positions with each dip in price action.
The forecast for gold remains cautiously bullish after this precious metal briefly pierced its contracting Ichimoku Kinko Hyo Cloud to the downside, which could face a false bearish crossover. Price action rebounded, but short-term bullishness faded, as evidenced by the flat Kijun-sen and Tenkan-sen. Traders should monitor the CCI after it plunged to multi-week lows in extreme oversold territory before accelerating into extreme overbought conditions. Gold traders should wait for this technical indicator to correct below zero and enter buy positions once it bounces higher, driven by favorable fundamental developments. Can bulls withstand bears and maintain upward pressure on gold until this precious metal can challenge 2023 highs? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for XAU/USD remain inside the or breakout above the 1,840.85 to 1,867.30 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,853.40
- Take Profit Zone: 1,934.85 – 1,959.60
- Stop Loss Level: 1,804.00
Should price action for XAU/USD breakdown below 1,840.85, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,804.00
- Take Profit Zone: 1,748.20 – 1,773.20
- Stop Loss Level: 1,840.85
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