GOLD → ATH retest. But there's news ahead! What to expect next?
Updated
XAUUSD is forming a sideways range of 2670 - 2650. The metal is still supported by bulls and the general fundamental background. There are important news ahead, which may strengthen the growth or provoke a correction....
September 24th Idea: Strong Bull Market
Gold is still on a bullish outlook, with the Fed's dovishness and optimism about China's economic stimulus re-emerging early on Thursday, which had a corresponding effect on gold, which strengthened from 2655 to ATH. We should not forget about the problems in the Middle East, which also affect the price of gold.
The fate of the metal depends on the upcoming Fed comments, as traders refrain from further bets amid extremely overbought conditions on the daily chart. Recent Fed statements coupled with weak consumer confidence and regional activity data from the US Conference Board (CB) have raised the stakes for another sharp Fed rate cut at the next meeting.
Resistance levels: 2670, 2675
Support levels: 2664, 2655, 2650
Emphasis on consolidation boundaries. If the bulls break the resistance and can keep prices above these boundaries, gold could make a new high and head towards 2700. But, unpredictable economic data may close gold in a range or trigger a profit-taking and correction towards 2650-2635.
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Regards R. Linda!
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Gold hit a new high for the previous trading session to 2685.
The market is still quite bullish.
The movement is gradual, without sharp bursts, which generally hints at the current strong bullish structure...
I still recommend to look at strong support zones as risk zones...
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! UPDATE !
GOLD extends trading range to 2685 (2650 from below). The bullish trend is still in place, but ahead of the PCE, traders are getting worried...
Gold's next move depends on the Fed's most favored inflation gauge, the core PCE price index. A higher-than-expected reading could weigh on the dollar, which could be negative for gold, as traders may see this as a “dampening of expectations for a November interest rate cut”. Conversely, a negative surprise in the PCE could increase the chances of a significant Fed rate cut....
Interest in gold is still huge, price could get stuck in consolidation, or test the 2634-2623 liquidity zone before next week's strong news (NFP)
Resistance levels: 2685, 2675
Support levels: 2654, 2649
At the moment the focus is on range boundaries, gold could quite possibly bounce off support and head towards the upper end of the range. It is possible that PCE could trigger a shakeout, in which case the price could test deeper liquidity zones before rising further....
Regards R. Linda!
Trade active
FalseBreadown
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! UPDATE !
If the bulls hold local range support, gold may head up.
But on Friday is NFP. Accordingly, there may be different market activity (before the news) from consolidation and flat, to rally down (profit-taking) or up (favorable background)
Gold may extend the trading range.....
from 2685 to 2620
Overall, gold is still in high demand due to escalating conflict in the middle east.
The dollar is generally preparing to renew lows and this will affect gold accordingly....
But, a week and a half after the rate cut, the market has cooled down and will depend on the incoming new data.
Waiting for Powell's speech on Monday, ISM PMI, ADP Nonfarm, Initial Jobless Claims, ISM PMI, NFP
Regards R. Linda!
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