2023-12-05 • Updated
Gold price experienced a notable turnaround, gaining fresh bids after a $125 pullback from its recent peak. Federal Reserve Chair Jerome Powell's recent speech suggested a reluctance towards aggressive rate cuts, dampening speculations of immediate policy easing. Market sentiment leans towards the belief that the Fed has concluded its tightening cycle, with a growing likelihood of a rate cut by March 2024. A modest uptick in the US Dollar acts as a headwind, yet gold maintains a steady bullish tone amid concerns over a potential conflict in the Middle East. The ongoing global economic uncertainties and a shift to safer assets contribute to gold's upside, with upcoming economic data and the monthly jobs report anticipated to guide future trends.
In my last article on GOLD (XAUUSD), I mentioned that the safe approach to consider before selling Gold would be a break below the trendline, where the retest of the trendline would serve as the entry. However, due to rumors of possible conflict and civil unrest across several quarters, it is evident that earlybird investors may have already begun stacking up Gold as a hedging strategy. By the way, price didn’t break the trendline support; at least not until recently.
XAUUSD on the weekly timeframe appears to have hit the trendline resistance on the weekly timeframe, leading to a rejection of the price action, and ultimately a bearish move. It is notable to me, however, that the recent high is an actual break of structure, not a mere fakeout. This said, I expect price to drop into the demand zone I have marked in order to regain its bullish momentum. The confluences at that ‘point-of-interest’ include;
Analyst’s Expectations:
Direction: Bearish
Target: 1938.50
Invalidation: 2071.28
The trading of CFDs comes at a risk. To succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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Bearish scenario: Sell below 2200 / 2194 ... Nearest bullish scenario: Buy above 2197... Bullish scenario after retracement: Consider buys around each indicated demand zone
Bullish scenario: Intraday buys above 2160.00 with TP: 2171 and TP2: 2177 // Bearish scenario: Sells below 2177 with TP1: 2150, TP2: 2142, and 2126
This article uses price action and volume profile techniques to address a fundamental and technical perspective based on the daily chart analysis of spot gold (XAUUSD).
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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