XAUUSD | GOLDSPOT | New perspective | follow-up details

Updated

Gold maintains its position around $2,000, buoyed by a weakening US Dollar and mixed US PMI data from Friday. Despite the recovery in US Treasury bond yields, the broadly weaker dollar prevails, driven by dovish bets on the Federal Reserve amid a manufacturing sector downturn. However, the upward momentum of gold faces potential constraints as rising US Treasury yields, with the 2-year rate reaching 4.95%, could impact its trajectory. With the Federal Reserve remaining data-dependent, the forthcoming release of Q3 Gross Domestic Product (GDP) revisions and October Personal Consumption Expenditures (PCE) figures may further influence the dynamics of the USD in the coming week.

XAUUSD Technical Analysis:
In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities.

The $2,005 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then the breakout/retest of this zone will serve as a platform for new highs. However, if selling pressure continues to persist below the zone, we could witness renewed selling pressure back into the demand zone at the $1,990 zone.

Dive into the latest Gold market dynamics! Stay informed for strategic investment decisions.
#GoldMarket #SafeHavenAssets #USDebt 📺🔔💼

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Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.

It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.

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Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.

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The new week has commenced with a robust start, marked by a breakout above the key level highlighted in our weekend video at the 2,005 zone, setting a bullish tone for the upcoming days. The question on everyone's mind: can this momentum be sustained?

While the gold price has retreated from the six-month high of 2,018 seen during the Asian session, it is consolidating well above the 2,000 mark, hinting at a degree of caution ahead of a crucial week dominated by inflation data from the United States.

My analysis suggests that Gold may be finding support in the negative sentiment surrounding the US Dollar. This pessimism has been fueled by the mixed S&P Global PMI data, leading market participants to speculate on the possibility of the US Federal Reserve considering monetary policy easing in 2024. These factors may be contributing to the strength of safe-haven assets like gold amid uncertainties in the US Dollar and the Fed’s monetary policy trajectory.
As of now, our focus should be on the newly identified range between 2,013.00 and 2,000.50, which will serve as our guiding light for today's trading session. As we prepare for our upcoming live session, we shall keep a close eye on how these dynamics unfold in the context of the broader market landscape.

Good Morning.

Trade active

#XAUUSD

UPDATE

The buyers' struggle to breach the 2,015 zone over the past 8 hours raises concerns that sellers might be gaining momentum. An unexpectedly robust report on New Home Sales data from the US could potentially act as a positive catalyst for the US Dollar. Consequently, a breakdown/retest of the 2,009.50 level may present favorable opportunities for selling. It's important to emphasize that the buy position is still active, but the market conditions suggest a cautious approach in light of the observed resistance.

Trade active

The buy position remains active with approximately 30 pips as Gold prices have broken through the 2,015 barrier during the Asian session. Price action is now in a bullish consolidation phase, trading in a range between 2,018 and 2009.50. The possibility of rate cuts in 2024 has weakened the US Dollar to a near three-week low, supporting the potential for an extension of Gold's recent uptrend. We will continue to look for buying opportunities at the breakout/retest of the 2,018 zone.
However, it is worth noting that market participants are hesitant to place aggressive bullish bets and are waiting for the release of the PCE Price Index from the United States for cues. The release of the Conference Board's Consumer Confidence Index and speeches by FOMC members today could create short-term trading opportunities, which we will discuss in detail during our upcoming live session.

Good Morning

Trade active

Two buy positions running with over 200 pips; Time to protect all positions as we look out for new trading opportunities

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#XAUUSD

UPDATE

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490 pips from three buy positions; protect more positions as we lookout for new trading opportunities.

Good Night

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With an impressive gain of over 750 pips across four positions, the Gold price has surged to a six-month peak, hovering near $2,050 during the Asian session. This remarkable move is underpinned by a surge in open interest, signaling a strong possibility of the current positive sentiment persisting in the short term.

The immediate outlook for Gold remains bullish, primarily fueled by the ongoing selling bias of the US Dollar, intensified by dovish expectations from the Federal Reserve. However, a crucial factor to consider is the imminent release of US GDP data today, which has the potential to significantly influence market dynamics.

In light of this, it is paramount to exercise caution and protect all existing buy positions at this juncture. The anticipation surrounding the GDP data introduces an element of uncertainty, making it essential for traders to adopt a patient stance and observe how market participants respond to this influential event.

Join us in our upcoming live session, where we'll delve into the intricacies of this market scenario. See you soon!

Good Morning

Note

#XAUUSD

UPDATE

As discussed during our live session today; Sell position still running. However, there is an observation of buying pressure ahead of the US GDP data [in 5 minutes]. The newly identified descending trendline remains our guide as a breakout/retest of the trendline will welcome buying opportunities.

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Despite the strong US GDP data, Gold prices continue to show resilience, with buyers maintaining pressure and sellers unable to break through the 2,036 zone. At this juncture, it is appropriate to initiate a buy position above the 2,043 zone as price action breaks the descending trendline.

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The buy position initiated yesterday remains intact as Gold prices approach a historic peak, fueled by increasing speculation of Fed rate cuts. This sentiment has been amplified by recent statements from Federal Reserve officials, and the consequent decline in bond yields, prompted by Federal Reserve Bank of Cleveland President Loretta Mester's suggestion of maintaining rates in December, is fortifying gold's position. Furthermore, economic indicators such as better-than-expected GDP growth in the third quarter and weaker consumer spending, is a significant factor shaping gold's trajectory. Investors are eagerly anticipating today's release of the Federal Reserve’s preferred underlying inflation measure, a critical piece that will offer insights into potential interest rate movements.
Currently, the ascending trendline on the 1H timeframe will serve as our guide for trading activities, and we will delve deeper into this during our upcoming live session.

Good Morning

Note

With the Core PCE coming in just as expected, this will be no surprise to market participants and this development could further fortify the narrative of "no interest rate hike" to provide psychological support for commodity assets such as Gold. In this regard, we are looking for buying opportunities at the breakout/retest of the 2,043. Please note that at this juncture, a breakdown/retest of the 2,037.50 level could welcome selling opportunities.

Trade active

The sell position initiated yesterday is currently facing a loss as buying potential resurfaces. The weakened US Dollar and declining US Treasury bond yields are contributing to an uptick in the safe-haven asset during the Asian session. However, it's crucial to highlight that despite this upward movement, price action remains below the descending trendline, indicating potential selling opportunities.

Gold prices are hovering within striking distance of their highest level since May 5, reaching the $2,038-$2,043 range. The US macro data released yesterday provided further indications of easing inflationary pressure and a slowing labor market. This has strengthened speculations that the Federal Reserve will maintain steady rates and potentially initiate cuts in 2024, a scenario favorable for safe-haven assets like Gold.

As we navigate these market dynamics, all eyes are now on the US ISM PMI for potential market impetus ahead of Fed Chair Jerome Powell's scheduled speech today. Join us for an in-depth discussion of these structural nuances during our upcoming live session, where we'll analyze the intricacies of the current market environment and explore potential trading opportunities.

Happy New Month!

darcsherry

Trade smart. Trade consciously

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XAUUSD | GOLDSPOT | New perspective | follow-up details

by darcsherry

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