Yesterday's very sharp decline in gold, this fall in gold was caused by:

  • Strong US Dollar
  • Market participants/investors are flocking to buy the Greenback as a safe haven
  • The geopolitical situation in the US is still unstable following the lack of agreement on stimulus and the heating up of the
  • competition between the US presidential candidates.
  • The continuing tensions in the South China Sea between the US and China

Here is the economic data to be released on Thursday, September 24, 2020:

  1. On Thursday morning at 6:50 WIB, the BOJ will hold a meeting regarding its monetary policy. If the report presents a more dovish outlook, the USD/JPY could rise, meaning the yen would weaken.
  2. The USD/JPY has the potential to continue rising if the Bank of Japan reports a decline in Japan's Consumer Price Index for September.
  3. Next, traders' focus will shift to the Swiss National Bank (SNB) interest rate announcement at 14:30 WIB. If the SNB unexpectedly cuts its interest rates, the USD/CHF could potentially move higher.
  4. At 15:00 WIB, the Ifo Institute will report on the current business climate in Germany and measure expectations for the next six months. If the data is reported higher than expected, the EUR/USD could strengthen.
  5. Next, the Confederation of British Industry will release a survey on retail and wholesale sales volume in the UK for September. If the data exceeds the expected figures, the GBP/USD could strengthen.
  6. Gold prices are predicted to become more active as the unemployment claims data will be released at 19:30 WIB and the new home sales data for the US in August at 21:00 WIB. If both data points are reported higher than expected, gold prices could strengthen.
  7. Fed Chairman Jerome Powell will give another speech at 21:00 WIB, if in his statement, Powell gives a hawkish statement then the price of gold has the potential to weaken.

Daily Pick

24 Sept Gold Chart Starts to Fade

Today's prediction for GOLD is a decline, and the recommended order is to SELL at the 1855 level. The target profit is 5-10 points, with a stop loss at 3-5 points. Always prioritize Money Management and Risk Management.

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