XAUUSD | GOLDSPOT | New perspective | follow-up detail [22 - 26]
Updated
Gold prices took a tumble on Friday, dropping over 2% as the US Dollar strengthened and investors took profits after last week's record highs. The precious metal extended its losing streak to three days, closing around the $2,400 level.
What drove the dip?
📈 Strong US Dollar: A surge in the USD, fueled by speculation about a Republican victory in the US elections, weighed on gold.
📈 Rising Bond Yields: Increasing bond yields also contributed to the decline, making gold less attractive.
But hold on, the story doesn't end there! 🤔
Analysts remain optimistic about gold's long-term prospects:
📉 Fed Rate Cuts: The Federal Reserve is expected to cut interest rates in September, which is bullish for gold.
📈 Market Sentiment: According to the CME FedWatch Tool, markets are pricing in a 98% chance of a U.S. rate cut in September.
🌎 Geopolitical Instability & Central Bank Demand: Ongoing global tensions and central bank buying provide further support for the precious metal.
🔍 What's Next?
Gold prices took a hit last week, but is this just a temporary dip or a sign of things to come? This video dives deep into the technical aspects of XAUUSD, offering insights into what to expect in the coming week!
Don't miss out on this comprehensive analysis!
XAUUSD Technical Overview:
This week, we're focusing on the crucial $2,400 level. This is a big deal for gold traders - it could be a make-or-break point. If gold stays above $2,400: Bulls might take control, potentially pushing prices higher and setting up new highs. If gold falls below $2,400: Bears might gain the upper hand, and prices could head south. 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!
#GoldAnalysis #ForexTrading #GoldMarket #FederalReserve #TradingStrategy #MarketInsights #USYields #InflationData #EmploymentData #FinancialMarkets #GoldPrice #Investing #TradingTips #ForexEducation #TrumpPolicies #JeromePowell #GeopoliticalStability #CentralBankDemand 📺🔔💼
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.
What drove the dip?
📈 Strong US Dollar: A surge in the USD, fueled by speculation about a Republican victory in the US elections, weighed on gold.
📈 Rising Bond Yields: Increasing bond yields also contributed to the decline, making gold less attractive.
But hold on, the story doesn't end there! 🤔
Analysts remain optimistic about gold's long-term prospects:
📉 Fed Rate Cuts: The Federal Reserve is expected to cut interest rates in September, which is bullish for gold.
📈 Market Sentiment: According to the CME FedWatch Tool, markets are pricing in a 98% chance of a U.S. rate cut in September.
🌎 Geopolitical Instability & Central Bank Demand: Ongoing global tensions and central bank buying provide further support for the precious metal.
🔍 What's Next?
Gold prices took a hit last week, but is this just a temporary dip or a sign of things to come? This video dives deep into the technical aspects of XAUUSD, offering insights into what to expect in the coming week!
Don't miss out on this comprehensive analysis!
XAUUSD Technical Overview:
This week, we're focusing on the crucial $2,400 level. This is a big deal for gold traders - it could be a make-or-break point. If gold stays above $2,400: Bulls might take control, potentially pushing prices higher and setting up new highs. If gold falls below $2,400: Bears might gain the upper hand, and prices could head south. 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!
#GoldAnalysis #ForexTrading #GoldMarket #FederalReserve #TradingStrategy #MarketInsights #USYields #InflationData #EmploymentData #FinancialMarkets #GoldPrice #Investing #TradingTips #ForexEducation #TrumpPolicies #JeromePowell #GeopoliticalStability #CentralBankDemand 📺🔔💼
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.
Note
Gold (XAUUSD) is currently finding support at our week's key level at the $2,400 zone after retracing from its recent record highs of $2,484. This pullback presents a potential entry point for buying opportunities as the market remains influenced by several key factors:📈 Dovish Fed Expectations: The prospect of a less hawkish Fed is weakening the USD, typically a positive factor for gold.
🇺🇸 US Political Landscape: The recent political developments have created uncertainty, supporting safe-haven demand for gold.
🌎 Global Economic Risks: Concerns over China's economy and geopolitical tensions are also boosting gold's appeal.
However, the lack of strong follow-through buying indicates caution among traders. This suggests that the market is seeking direction from upcoming economic releases, particularly the US PCE Price Index data on Friday.
This data release will be crucial for gauging the Fed's future policy moves and their potential impact on gold. We will be closely monitoring the behavioural pattern of market participants through the character of price action ahead of the PCE data.
In light of these developments, we have identified a new structure to guide our market activity today. We will elaborate on this during our upcoming live session... Don't forget to join us as we discuss how these market developments present opportunities for both long and short opportunities.
Good Morning
Note
Gold prices are facing pressure to gain ground amid a confluence of mixed fundamental cues as it is currently caught in a tug-of-war between bullish and bearish forces. While some factors suggest an upside potential, others are exerting downward pressure on the yellow metal.Positive Catalysts:
📈 Dovish Fed Expectations: Market participants are increasingly expecting the Federal Reserve to begin lowering borrowing costs in September, with two further cuts projected by year-end. This has led to a decline in US Treasury bond yields, which typically provides support for gold as a non-yielding asset.
📉 Weakening US Dollar: The anticipated Fed rate cuts and declining US bond yields have kept the US Dollar on the defensive, creating a supportive environment for gold.
Negative Catalysts:
⚖️ Potential for Looser Regulations: President Biden's withdrawal from the 2024 Presidential election has increased the likelihood of a Donald Trump victory, potentially leading to a less stringent regulatory environment. This could dampen investor demand for safe-haven assets, including gold.
📈 China's Interest Rate Cuts: The People's Bank of China's unexpected interest rate cuts on Monday have boosted global risk appetite, further reducing demand for safe-haven assets like gold.
Technical Outlook:
The recent market dynamics have resulted in a wide range-bound pattern for the XAUUSD pair. This suggests that the current price levels are likely to persist, offering potential trading opportunities at the break of this range.
Good Morning
Trade active
Two buy positions remain active as Gold prices sustain their rebound above the key $2,400 level during the Asian session, despite a strong US Dollar and rising US Treasury bond yields.The bullish momentum is driven by several supporting factors:
📉 A generally weaker tone in global equity markets
📉 A modest pullback in the US Dollar (USD) from its nearly two-week high set earlier today, benefiting the yellow metal
📉 Growing acceptance that the Federal Reserve (Fed) will begin its rate-cutting cycle in September
📉 US political developments, which have prompted some intraday selling around the USD, acting as a tailwind for Gold prices.
At this juncture, market participants may prefer to wait for more cues about the Fed's policy path. Thus, the focus remains on the upcoming Advance US Q2 GDP and US Personal Consumption Expenditures (PCE) Price Index data, due on Thursday and Friday, respectively. In the meantime, the flash global PMIs will be watched for short-term momentum.
In light of these developments, it is prudent to secure some profit from the existing buy positions while we anticipate today's economic events. We will elaborate further on the current market dynamics during our upcoming live session.
Good Morning
Note
After missing out on the bearish momentum from late yesterday's session, trading activity for Gold (XAUUSD) has been range-bound for the past 8 hours, reflecting the prevailing uncertainty ahead of the US second-quarter Gross Domestic Product (GDP) data release later today. Notably, expectations of the Federal Reserve (Fed) starting its rate-cutting cycle in September have kept the US Dollar (USD) depressed, below the two-week high touched on Wednesday, providing a tailwind for the non-yielding yellow metal.Additionally, the risk-off sentiment, as indicated by weaker global equity markets, further supports the Gold price. At this juncture, market participants are likely to avoid making aggressive directional bets, preferring to wait for clearer signals regarding the Fed's policy path. Consequently, the focus will remain on the Q2 GDP print due later today and the Personal Consumption Expenditures (PCE) Price Index on Friday.
Given these developments, a new structural detail has been identified on the 1-hour timeframe, resembling a downtrend continuation pattern. We will use key resistance and support levels of this pattern to guide our trading strategy for today's price action.
Good Morning
Note
The release of US Q2 Gross Domestic Product (GDP) data showed a robust growth of 2.8% annualized, surpassing market expectations of 2.0% and doubling the previous quarter's 1.4% pace. This exceeding performance suggests a stronger-than-anticipated US economy, potentially leading the Federal Reserve (Fed) to maintain elevated interest rates for an extended period to effectively manage inflation.The positive GDP data has exerted downward pressure on Gold (XAUUSD) as higher interest rates tend to reduce the attractiveness of non-yielding assets like gold. Despite yesterday's bearish move, Gold managed to defend the crucial support level near $2,360, limiting weekly losses above this point.
It is important to note that despite the GDP surprise, market sentiment continues to heavily favor interest rate cuts by the Federal Reserve, with a full reduction priced in for the September meeting and anticipation of two additional cuts by year-end.
The release of the US Core Personal Consumption Expenditures (PCE) price index data today is expected to significantly impact Gold's price action. The $2,360 support level will serve as a key indicator for our trading decisions today.
⬇️Breakdown/Retest: A break below $2,360 could trigger further selling pressure, potentially leading to a more pronounced decline in Gold's price.
⬆️ Sustained Buy Pressure Above $2,360: Continued price action above this level could indicate a resurgence of bullish momentum, potentially driving a new wave of upward movement.
Stay tuned as I will be updating here with new trading setups on lower timeframes.
Good Morning
Note
#XAUUSDSTRUCTURAL UPDATE | 15 Min TImeframe
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