XAUUSD weekly forecast Quotes GOLD XAU/USD close the trading week near the area of 1279. Quotes continue to move within the framework of the upward correction. At the moment, quotes have pushed off the lower border of the channel, we should expect the growth of quotations above the level of 1350.
XAUUSD weekly forecast on October 23 — 27, 2017
In favor of the growth of quotations and prices for GOLD, a test of the support line on the indicator of relative strength index (RSI), as well as the formation of the bullish model 5-0. Cancellation of the growth scenario for XAU/USD will be the fall and breakdown of the area of 1240, which will indicate the outflow of quotes out of the channel and the continued decline in GOLD prices with a potential target near the level of 1205.
XAUUSD weekly forecast
XAU/USD weekly forecast on October 23 — 27, 2017 suggests a test of the lower border of the channel, from which it is expected to rebound and a rise in gold prices above the level of 1350 within the development of the bullish «5-0» model, in favor of growth will perform a trend line test on the indicator relative strength (RSI).
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Commodities Buyers and Producers
The sale and purchase of commodities is usually executed through futures contracts on exchanges that standardize the quantity and minimal satisfactory of the commodity being traded. As an example, the Chicago board of trade stipulates that one wheat agreement is for five,000 bushels and also states what grades of wheat can be used to meet the settlement.
There are sorts of traders that change commodity futures. The first is customers and producers of commodities that use commodity futures contracts for the hedging functions for which they were first meant. Theses buyers truly make or take delivery of the actual commodity while the futures agreement expires. As an example, the wheat farmer that vegetation a crop can hedge towards the hazard of dropping money if the charge of wheat falls before the crop is harvested. The farmer can promote wheat futures contracts while the crop is planted and guarantee a predetermined price for the wheat at the time it’s far harvested.
Theses traders in no way have the desire to make or take transport of the real commodity while the futures agreement expires. Among the futures markets are very liquid and have an excessive degree of each day variety and volatility, making them very tempting markets for intraday buyers. A number of the index futures are utilized by brokerages and portfolio managers to offset threat. Additionally, since commodities do now not generally exchange in tandem with equity and bond markets, some commodities can also be used correctly to diversify a funding portfolio.
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