Gold has been considered a highly valuable commodity for millennia and the gold price is widely followed in financial markets around the world.
Most commonly quoted in US Dollars is (XAU/USD).
All the times in Forex, Hedge funders and big kids use gold to hedge their basket from market risk. and they use this gold as a hedge. For this reason, gold holds value well and makes it a reliable safe haven like the risk-on risk-off sentiment.
When the US dollar is strengthened with demand actualy big Kids sell gold to buy US dollar and if the US get down they Buy gold to hedge and protect their assets. Generally, gold price tends to increase as stocks and bonds decline.
Now hot we can finde this demands or market situation in market?
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Bond is a debt obligation issued by the United States government with a maturity of 10 years upon initial issuance. A 10-year Treasury note pays interest at a fixed rate once every six months and pays the face value to the holder at maturity.
The U.S. government partially funds itself by issuing 10-year Treasury notes. Inflation expectations affects on these bonds prices and changing the bonds prices effect on bonds yield.
Traders, financial institude and big traders invest in this bonds to hedge their assests in risky market. Like investing in fixed income funds.
The US10Y indicator, determinded the 10 years US bond yield and shows the investor confidence about the markets.
If traders have more confidence in market, sells theire bonds and buys risky assets in their cash.
If trades confidence decrease, so trader sells theire assets and buy bonds. generally positive changes in US10Y means bond sold and boy risky assets (greed) and vice versa, buying bonds means risk aversion (fear)
Becasue the gold is a safe-haven assets, With this indicator, we can find the FEAR and GREED sentiment in market to trade the gold ans a assets that trader buy or sell it in exactly FEAR and GREED situation.
When the market goes to Risk/ON - Risk OFF, with US monetary polity changes or bond yield changes effect on gold price. gold price has negetive corolation between US10Y and nice possitive corelation with real yield (iShares TIPS Bond ETF)
Gold Extractor, collecting all the necessary fundamental information, US10Y data and real yield (iShares TIPS Bond ETF) as Inflation expectations to predict gold movement and trade with the Scalping strategy.
Note: Don't forget to add news and fundamental source link on your Allow web request list for news filter and other fundamentals data
Backtest is not real result for this EA, Because 50% of trades confirmation comes from online data (US10Y and iShares TIPS) also EA use online News filter to avoide bad market movement and this online data dosn't work in backtest.
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