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Market News Gold soared nearly 8% in May, Gold price to hit $4000 in 3 years (With Trading Strategy)

Gold soared nearly 8% in May, Gold price to hit $4000 in 3 years (With Trading Strategy)

UK in early stages of third wave; Gold hovers near 5-month peak on weaker dollar; Gold price to hit $4,000 in 3 years, real inflation is at 12%.

Eden
2021-06-01
684

gold.jpeg


Gold prices on Tuesday traded near a five-month high scaled last week, supported by a softer dollar and growing inflationary pressures, while investors awaited key U.S. data that will provide a clearer picture on the global economy’s recovery path.


Spot gold rose 0.73% to ¥1911.69 per ounce by 15:50(GMT+8).


U.S. gold futures edged 0.3% higher to $1,910.60 per ounce.


The dollar index was down 0.3% against its rivals, making gold less expensive for other currency holders. The U.S. unit registered its second consecutive monthly loss.


Last week, data showed U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2% target and posting its largest annual gain since 1992. 


Gold, often used as a hedge against inflation, has benefited from recent data showing a rise in prices in the United States and Britain.


Factory activity in Japan expanded at a slower pace in May as growth in output and new orders eased, and though external demand remains strong worries are growing that domestic coronavirus emergency curbs could derail the economic recovery.


Market participants’ focus this week will be on U.S. payrolls data on Friday, with median forecasts suggesting they will show an increase of 650,000.


Prof Ravi Gupta, from the University of Cambridge, said the UK was already in a third wave of infections and at least three quarters of cases were the variant identified in India.


He said: "Of course the numbers of cases are relatively low at the moment - all waves start with low numbers of cases that grumble in the background and then become explosive, so the key here is that what we are seeing here is the signs of an early wave."


However, he said the number of people who had been vaccinated in the UK meant this wave would probably take longer to emerge than previous ones.


"There may be a false sense of security for some time, and that's our concern.”


He said ending Covid restrictions in England on 21 June should be postponed.


But business leaders have warned of the harmful impact of any change to the proposed dates.


Inflation is the most concerned topic for investors.


 Inflation is rising out of control and investors should hold cryptocurrencies, gold and real estate to protect their wealth, said Frank Holmes, CEO and CIO of U.S. Global Investors, and executive chairman of Hive Blockchain Technologies.


Holmes, whose firm manages more than $4 billion in assets under management, said that inflation is significantly understated. He added that if inflation was calculated by traditional methods, it would be up 12%.


Holmes said that the U.S. government and the Federal Reserve is trying to talk down inflation because the economic recovery is still fragile.


"The federal government here is very concerned about that. They're, trying to tiptoe around this issue, but they can stop this. Big inflation coming and, and real assets are the place to be," he said.


With price pressures rising significantly. Holmes' reiterated his call for gold prices to push to $4,000 an ounce within three years. Along with holding precious metals, Holmes said that he is also interested in income-producing real estate.


"Hopefully, you don't have much development to do because it's going to be very expensive," he said.


Another essential asset in a portfolio is cryptocurrency. Holmes said that digital currencies are not going anywhere as an entire generation is using them.


"The idea of Bitcoin, Ethereum, it's in their blood. It's not foreign to them," he said.


Trading strategy (Source: Trading Central)

Our pivot point is at 1907.60.


Our preference: the upside prevails as long as 1907.60 is support.


Alternative scenario: below 1907.60, expect 1899.90 and 1895.30.


Comment: the RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Gold (CME) (Q1) is above its 20 and 50 period moving average (respectively at 1910.30 and 1909.30).


Supports and resistances:

1936.70 **

1932.10 *

1927.50 **

1923.00

1913.80 last

1910.60

1907.60 **

Guideline for Trading Central strategy 


Trend chart reading guideline


1. First look at the time period in the upper left corner of the chart: ·30MIN and 1H chart shows the trading suggestions for intraday ·Daily chart shows the market trend analysis in next 2-3 days


2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.


3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;


4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.


How to use TC strategy?


1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell. 


2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.


3. [Alternative scenario] is the plan B for your reference. 


4. [Comment] is the technical analysis of market trends and technical support for trading strategies. 


5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.


Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.

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