Xauusd analysis on dated 11-8-2022

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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-

 

  • A shooting star has been posted on the daily charts.
  • This is negative for sentiment and the downtrend has potential to return.
  • There is scope for mild buying at the open but gains should be limited.
  • Further downside is expected although we prefer to sell into rallies close to the 1810.00 level

 

Recommendation: Sell/Sell limit @ 1812          Target: 1770

 

 

** T & C apply.