Xauusd analysis on dated 05-8-2022

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Gold is a valuable resource that has been traded for centuries. The value of gold is determined by its rarity and the demand for it. Gold can be used as currency, jewelry, or an investment. In recent years, the price of gold has fluctuated significantly. In 2022, the price of gold was $1,700 per ounce.

 

Gold is often seen as a safe investment because it is not affected by inflation or economic instability like other commodities are. Many investors buy gold as a way to protect their money from fluctuations in the stock market or to hedge against inflation. Gold also has a low correlation to other assets so it can be used to reduce risk in a portfolio.

 

Despite its many benefits, there are some risks associated with investing in gold. One risk is that the price of gold may fall if demand decreases or if new sources of gold are discovered . Another riskis that the value of gold may not keep up with inflation. Investors should carefully consider these risks before investing in gold.

 

There’s always been strong demand for physical gold from countries like China and India, where it is seen as a store of value. Following direction should be considered when you open a new trade-

 

  • Following yesterday’s bullish candle, the overall trend higher looks set to continue today.
  • A weaker opening is expected to challenge bullish resolve.
  • Support is located at 1770.00 and should stem dips to this area.
  • Dip buying offers good risk/reward.
  • Further upside is expected.

 

Recommendations: Buy/Buy limit @ 1775          Target: 1800/1810

N.B : Valid for one day/24hours

 

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