XAUUSD | GOLDSPOT | New perspective | follow-up detail
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Gold prices surged on Friday as the US Dollar and Treasury bond yields tumbled, driven by dovish comments from Federal Reserve Chair Jerome Powell. With the Fed signalling a policy shift and acknowledging that inflation is nearing the 2% target, the focus has turned towards achieving maximum employment. This backdrop has sparked renewed interest in gold among Western investors, especially as expected interest rate cuts could reduce the opportunity cost of holding the precious metal.
In this video, we analyze the current market dynamics, showing why gold may not be overbought and why there’s potential for continued upward momentum. The CME FedWatch Tool indicates a 25 bps rate cut is fully priced in, with rising odds for a larger cut. We’ll dive into both the technical charts and fundamental factors that favor higher gold prices in the coming week.
XAUUSD Technical Overview:
This week, we're focusing on the $2,495 zone. This could be a make-or-break point. If gold stays above this zone: Bulls might maintain control, potentially pushing prices higher and setting up new highs. If gold drops below the zone then Bears might gain the upper hand in an attempt to retrace into the structure-support line of the ascending channel in the process. Join me as we explore these factors and potential opportunities in the gold market. Like, subscribe, and hit the notification bell for the latest analysis and insights!
📌 Follow my journey as I map out the next moves in this dynamic market!
#Gold #XAUUSD #Forex #FederalReserve #InterestRates #Inflation #TradingStrategy #MarketAnalysis #TechnicalAnalysis #Investing #ForexTrading #JacksonHole #Investment #TradingStrategy #FXTrading📺🔔💼
Disclaimer Notice:
Trading in the foreign exchange market and other instruments carries a high risk and may not be suitable for all investors. The content provided here is for educational purposes only. Evaluate your financial situation and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.
In this video, we analyze the current market dynamics, showing why gold may not be overbought and why there’s potential for continued upward momentum. The CME FedWatch Tool indicates a 25 bps rate cut is fully priced in, with rising odds for a larger cut. We’ll dive into both the technical charts and fundamental factors that favor higher gold prices in the coming week.
XAUUSD Technical Overview:
This week, we're focusing on the $2,495 zone. This could be a make-or-break point. If gold stays above this zone: Bulls might maintain control, potentially pushing prices higher and setting up new highs. If gold drops below the zone then Bears might gain the upper hand in an attempt to retrace into the structure-support line of the ascending channel in the process. Join me as we explore these factors and potential opportunities in the gold market. Like, subscribe, and hit the notification bell for the latest analysis and insights!
📌 Follow my journey as I map out the next moves in this dynamic market!
#Gold #XAUUSD #Forex #FederalReserve #InterestRates #Inflation #TradingStrategy #MarketAnalysis #TechnicalAnalysis #Investing #ForexTrading #JacksonHole #Investment #TradingStrategy #FXTrading📺🔔💼
Disclaimer Notice:
Trading in the foreign exchange market and other instruments carries a high risk and may not be suitable for all investors. The content provided here is for educational purposes only. Evaluate your financial situation and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.
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Gold prices kicked off the week on a strong footing, continuing to climb as market sentiment tilts towards the possibility of the US Federal Reserve lowering borrowing costs in September. The anticipation of a rate cut has bolstered Gold’s appeal as investors seek safe-haven assets.
Adding to the bullish momentum, escalating geopolitical tensions in the Middle East and ongoing economic uncertainties are likely to drive further demand for Gold. However, this optimism is tempered by concerns over sluggish demand from China, the world’s largest producer and consumer of gold, which could weigh on safe-haven assets.
As we progress through the week, there are a couple of key economic indicators that will be impacting the sentiment in the market. The US July Durable Goods Orders report is due later today, followed by the preliminary US Gross Domestic Product Annualized (Q2) on Thursday and the Personal Consumption Expenditures-Price Index (PCE) for July on Friday.
In anticipation of these upcoming events, we’ve identified a new structure on the 1H timeframe [see charts below], which will guide our trading decisions as we navigate today’s market dynamics.
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Yesterday's buy position got taken out, and it seems that sellers have gained the upper hand as tensions in the Middle East ease, reducing the safe-haven demand for Gold. Adding to the pressure, the latest US Durable Goods Orders data showed a surprising 9.9% rise—the strongest since May 2020. This positive data helped to ease some concerns about the US economy and likely tempered expectations that the Federal Reserve would need to cut interest rates aggressively to prevent a hard landing.
Given these developments and as indicated on the chart below, the descending trendline that captured the pivot low in the last 24 hours will be our key reference point for today's trading.
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Note
Gold prices have dipped back into negative territory but remain supported within a key demand zone between $2,503 and $2,509. As market participants await speeches from US Federal Reserve policymakers today, the focus is on fresh signals about the future direction of interest rates.
Despite the dip, ongoing geopolitical tensions in the Middle East are providing underlying support for gold, helping to limit further losses. Investors will closely watch comments from Fed's Christopher Waller and Raphael Bostic today, hoping for clarity on the US interest rate path.
Looking ahead, attention will also shift to the upcoming US GDP Annualized and PCE Price Index data set to be released on Thursday and Friday. Stronger-than-expected results could bolster the US Dollar and potentially limit gold's upside.
For now, we continue to monitor the market for buying opportunities as long as prices remain above the identified demand zone. We'll delve deeper into these market dynamics during our next live session.
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Gold showed some resilience during the Asian session as the ongoing anticipation of US interest rate cuts continues to bolster its demand. The backdrop of political uncertainty in the US, ongoing geopolitical tensions in the Middle East, and broader global economic concerns further add to gold’s appeal.
However, the recent strength of the US Dollar has put a cap on gold's upward momentum, making it pricier for buyers as we approach today’s GDP data release. This will be a key event, with investors keenly watching for any clues on the Federal Reserve's next move regarding the size and pace of the interest rate cuts. And with the US Personal Consumption Expenditures (PCE) Price Index data set to be released on Friday, all eyes are on how these figures might shape the market's direction.
In light of these developments, a new technical structure has been identified to guide our trading decisions today.
Stay tuned as I'll be sharing follow-up details on the 15-minute timeframe shortly for a closer look at our next steps.
NB: Secure all existing buy positions
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#XAUUSD
STRUCTURAL UPDATE | 15 Min Timeframe
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