Trading the trend: long gold
The recent sell-off in the gold price may represent a medium-term buying opportunity which is why we would like to go long gold, with a stop loss below the mid-March lows at $2,145 and an upside target around the $2,500 mark.
(AI Video Summary)
Previous VIX and EUR/USD trading outcome
In this week's episode of "Trading the trend", Axel Rudolph revisits his previous successful trade of going short on the volatility index in mid-April, capitalising on geopolitical tension-induced fluctuations without being stopped out, suggesting profit-taking or stop-loss adjustments to safeguard against losses. He also highlights a profitable short position on the EUR/USD currency pair, with advice on managing risk through stop-loss strategies.
This week's trading opportunity
Rudolph then recommends to go long on buying gold futures, anticipating a rise, but advised a cautious approach with a wide stop-loss due to potential volatility from imminent FOMC and non-farm payroll reports, targeting a significant upside. He advises going with a stop loss below the mid-March lows at $2,145 and an upside target around the $2,500 mark.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
Live prices on most popular markets
- Forex
- Shares
- Indices
