Before you open any trade on Gold, always check the economic calendar first.
In this article, you will learn the best free economic calendar and high impact fundamental news that can influence Gold prices.
I will teach the important actions to take and a trading strategy to follow both before and after news releases to improve your Gold trading strategy.
Free Economic Calendar
The economic calendar that I use for Gold trading is on Tradingview.
The news that influence Gold prices are high impact US news.
To display only such news, you should set the filters.
You should click "Only High Importance" and in the list of countries choose only the United States.
All 3 star US news may influence Gold prices dramatically.
Real Impact
In Gold trading, the release of high impact fundamental news is one of the major causes of trading positions being closed in a loss. Because such news may make the market completely irrational, increasing the volatility.
Look how strongly Gold prices dropped, immediately after US personal spending news were posted.
Remember, though, that there is no guarantee that Gold will react to this news. Quite often, the market will not be affected at all.
The release of US GDP did not influence Gold at all and the market continued consolidating.
Beware of False Signals
In order to protect your trading account from unexpected losses,
I recommend not opening any trading position 3 hours ahead of the news.
Usually, during that period, the markets start slowing down, preparing for the news.
Most of the breakouts, signals that you will see in such a period will be false.
3 hours before the US Durable Orders fundamental news, Gold broke and closed below a key daily horizontal support. From a technical analysis standpoint, it was a strong bearish signal.
However, that signal was false, and the price went up rapidly after the news.
Safest Strategy
If you have an active trade, 10 minutes ahead of the release of the fundamentals, protect your position.
Simply take a stop loss and move it to entry level.
If the price rapidly reverses after a news release, you will close the position with a 0 loss.
Here is a long trade on Gold that we took with my trading academy members.
10 minutes ahead of US unemployment data, we moved stop loss to entry level.
Fundamental news made the market bearish, and the price went down.
Our decision to protect a trading position helped us to avoid losses.
Alternatively, you can close your active trade 10 minutes ahead of the news.
Be Patient
After the release of the news, I suggest waiting for the close of an hourly candle before you take any trade.
With the first hourly candle close after the news, you will see how the market participants price in its impact, letting you make a better decision.
That is how Gold reacted to US Inflation data. Any trade should be opened at least after the hourly candle close to let the market price in its real effect.
These 3 simple rules will help you to cut losses cause by the fundamental news.
Integrate them in your trading strategy to increase your profits.
Never forget to monitor the economic calendar and good luck in your trading.
