XAUUSD | GOLDSPOT | New perspective | follow-up details
Updated
In the latest twist of events, gold prices have experienced a significant downturn, marking the second consecutive quarterly decline. This decline, which initiated in August and persisted through September, reached a pinnacle this week, marking the most substantial drop in over two years.
What's particularly noteworthy is gold's relinquishment of its stronghold on the crucial bullish threshold of $1,900 an ounce, a level it had firmly maintained since mid-August. This strategic shift occurred as investors sought refuge in the dollar, deeming it a safer haven, especially given the relatively robust performance of the U.S. economy in comparison to the global landscape.
The U.S. economic growth, standing at 2.1% year-on-year in the second quarter (following 2.2% in the first quarter), underscores this strength. Projections indicate a consistent 2.1% expansion for the entirety of 2023. While factors such as inflation, the labor market, and consumer spending have contributed to this stability, concerns loom over factory activity due to a bleak demand outlook.
To gain further insights into the state of the factory sector, all eyes are on the Manufacturing PMI report for September, set to be released on Monday. This report is anticipated to provide crucial clues about the current health of the manufacturing industry, influencing the market sentiment significantly.
In terms of gold prices, there's a glimmer of hope as the asset found interim support after hitting a fresh six-month low at $1,847.00. The recent five-day losing streak appears to have paused, yet for a sustainable recovery, gold must reclaim the pivotal $1,900.00 mark. Despite this temporary reprieve, the overarching trend remains bearish.
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 $1,847 and $1,885 zone will remain our center stage for this week. Its historical significance makes it a crucial point. If the bearish momentum is sustained then the breakdown of the $1,847 and the support line of the descending channel on the 4H timeframe could incite a strong downtrend continuation. However, for a sustained recovery the asset has to recapture the crucial $1,900.00.
Stay tuned for more thrilling updates on the Gold market! Remember, trading involves risks, and I always recommend exercising caution and seeking advice from financial professionals. Hit the like button if you found this analysis helpful, and don't forget to subscribe for more insightful content! 📺🔔💼
Disclaimer Notice:
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.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
What's particularly noteworthy is gold's relinquishment of its stronghold on the crucial bullish threshold of $1,900 an ounce, a level it had firmly maintained since mid-August. This strategic shift occurred as investors sought refuge in the dollar, deeming it a safer haven, especially given the relatively robust performance of the U.S. economy in comparison to the global landscape.
The U.S. economic growth, standing at 2.1% year-on-year in the second quarter (following 2.2% in the first quarter), underscores this strength. Projections indicate a consistent 2.1% expansion for the entirety of 2023. While factors such as inflation, the labor market, and consumer spending have contributed to this stability, concerns loom over factory activity due to a bleak demand outlook.
To gain further insights into the state of the factory sector, all eyes are on the Manufacturing PMI report for September, set to be released on Monday. This report is anticipated to provide crucial clues about the current health of the manufacturing industry, influencing the market sentiment significantly.
In terms of gold prices, there's a glimmer of hope as the asset found interim support after hitting a fresh six-month low at $1,847.00. The recent five-day losing streak appears to have paused, yet for a sustainable recovery, gold must reclaim the pivotal $1,900.00 mark. Despite this temporary reprieve, the overarching trend remains bearish.
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 $1,847 and $1,885 zone will remain our center stage for this week. Its historical significance makes it a crucial point. If the bearish momentum is sustained then the breakdown of the $1,847 and the support line of the descending channel on the 4H timeframe could incite a strong downtrend continuation. However, for a sustained recovery the asset has to recapture the crucial $1,900.00.
Stay tuned for more thrilling updates on the Gold market! Remember, trading involves risks, and I always recommend exercising caution and seeking advice from financial professionals. Hit the like button if you found this analysis helpful, and don't forget to subscribe for more insightful content! 📺🔔💼
Disclaimer Notice:
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.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Note
In the early hours of the new week, the market has settled into a tight range, fluctuating between $1,848.50 and $1,839.50. However, it is worth noting that price action has broken the support line of the descending channel, a trend identified in the 4-hour timeframe. This development indicates a seller's strength. In times like these, it's crucial to exercise patience and observe the market dynamics. We're standing by, awaiting a decisive breakout or breakdown of this range for trading opportunities. Stay tuned for our live session as we navigate these price movements.Good Morning
Trade active
Just as discussed during our live session this morning; the sell position was triggered at the breakdown of the $1,839.50 level. Secure positionTrade active
UPDATETrade active
The US Dollar maintains its stronghold in the market. Currently, we have two sell positions, yielding a total profit of 270 pips. I recommend securing all positions as we keep an eye out for upcoming trading opportunities. Additionally, we anticipate the release of the JOLTS Job Openings data later today, the anticipation of this event could provide valuable insights for our trading strategy.Good Morning
Trade active
In the past 16 hours, the US Dollar has exhibited remarkable resilience, maintaining its grip on the market. However, a closer look at trading activities reveals a fascinating trend: sellers seem to be losing their steam. The recent candles indicate a decrease in downside volume, signaling potential exhaustion among sellers. The pivotal $1,817.50 zone has been acting as a sturdy support, showcasing the market's cautious optimism.Trading Strategy Insights:
1️⃣ Securing Sell Positions: If you are holding any sell positions, it's imperative to lock in your profits now. The diminishing volume to the downside and the resilient support at $1,817.50 suggest a possible weakening in bearish momentum.
2️⃣ Opportunities on the Horizon: Keep a close eye on the $1,817.50 zone. A breakdown or retest of this level could open the door for fresh selling opportunities.
3️⃣ Spotting Momentum Shifts: Be vigilant for any signs of a breach in the descending trendline. A breach could signify a shift in market dynamics, potentially offering new avenues for buyers.
📊 What's Next: ADP Employment Change and ISM Service PMI Data Awaited!
Our focus will be on the upcoming ADP Employment Change and ISM Service PMI data. These indicators will provide valuable insights into the strength of the US economy, guiding our trading decisions in the coming days.
Good Morning
Trade active
Our buy position stands in the face of Gold's struggle to find traction amidst the downbeat United States labor market and soft ISM Services PMI data from yesterday's session. As we approach Friday's eagerly anticipated Non-Farm Payrolls (NFP) report, market conditions remain shrouded in uncertainty.📉 The Challenge Ahead: Despite the challenges, our strategic buy position holds its ground. We're closely monitoring the market dynamics, preparing ourselves for potential shifts.
🎯 Critical Price Point: Keep a close eye on the $1,817.50 zone. Selling opportunities will only come into play if there's a confirmed breakdown/retest at this crucial level. Precision and patience are our guiding principles as we navigate these uncertain waters.
Good Morning
Trade closed: stop reached
After being taken out from our buy position in a loss yesterday, the market's current condition remains uncertain as we await the release of the NFP data today. Trading activities seem to be limited within the range of $1,817.50 and $1,829, indicating that major players have likely stepped aside and are waiting for further indications before taking any action. The upcoming NFP data will provide valuable insights into whether the labor market is still tight, particularly in light of the strong JOLTS report and softer private payroll data. These factors may influence the Fed's decision to raise interest rates next month. In the meantime, we must exercise patience and wait for signals such as a breakout or breakdown of the range, which could present potential trading opportunitiesGood Morning
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Trade active
The NFP data has surpassed all expectations, revealing a strong labor market in the US with a significant figure of 263,000. This robust data reinforces the anticipation of a final interest-rate hike by the US Federal Reserve (Fed) this quarter. Consequently, the market reaction favors the USD as price action breaks down the $1,817 zone after multiple attempts over four days. It's prudent to secure sell positions at this point and look out for possible retests for more confirmations. However, if buying sentiment rolls in, a breakout and ONLY a retest of the $1,825 level will welcome buying opportunities.
Trade smart. Trade consciously
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