Research

Gold: A Tactical Opportunity

market-avatar

Algo Research Team

Industry | Mar 20, 2023 | Views: 112

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • Gold price is reaching towards $2,000
  • Central banks are injecting liquidity into the market
  • A hedge to inflation and recession

In the midst of market turbulence, our view remain cautious to the downside risks for the broad market. Nonetheless, we see an interesting supportive momentum in gold. Since the banking crisis begun, the price of gold has surged +10%, nearing $2,000 and forming an uptrend. We think the recent momentum is caused by global liquidity injections (sign of capitulation by central banks) and weakening USD. Therefore, this represents a trading opportunity for gold while the gap between underlying asset and stock prices is widening. However, note that the crisis is not yet over and we will likely test market lows again over the coming quarter.


Gold price near $2,000

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.