GOLD established a falling structure after a sharp decline
Updated
XAUUSD Spot delivery is basically stable after yesterday's plunge. The current gold price is about 2,660 USD/ounce. Previously on Wednesday (November 6), after Trump was elected President of the United States, investors rushed to buy US Dollar, XAUUSD plummeted to its lowest level in 3 weeks.As sent to readers in many articles about the election of Trump, a shock decline in gold is inevitable because Trump's "steering wheel" will support the Dollar from general economic policies.
Trump's victory will boost the dollar as he is expected to propose new tariffs that could cause a spike in inflation and cause the Federal Reserve to pause its easing cycle.
Fed decision upcoming
After cutting interest rates by 50 basis points in September, the market expects the Fed to cut interest rates by 25 basis points this time.
The US economic calendar today (Thursday) will focus on the Federal Reserve's monetary policy decision. The Fed is expected to reduce borrowing costs by 25 basis points to a range of 4.50%-4.75%.
Trump and the Fed
Trump's economic policy proposes imposing taxes, increasing the fiscal deficit, and reducing taxes. His economic advice conflicts with the Fed's anti-inflation policy. Therefore, the Fed will be forced to take a very cautious approach when loosening monetary policy.
The risk of rising inflation after Trump introduced new taxes could slow the pace of interest rate cuts by the Federal Reserve. This is very important because Trump and the Fed are becoming opposing, it is likely that Trump will destroy all previous efforts of the Fed to curb inflation.
For more than 70 years, the Federal Reserve has operated as an independent government agency in the United States, but this tradition may soon be overturned. After declaring victory on Wednesday (November 6), Donald Trump is preparing to talk about "interest rates" after taking office in January 2025, insisting his intuition is better than the Chairman of the Reserve Federal Powell.
For more than 70 years, the US central bank has operated as an independent government agency. When officials meet to decide interest rates, they will not need to consult with the president and other elected officials. That's because, as the former Fed chairman famously said, “The job of the central bank is to get rid of the drinking bowl just as the party is getting started.”
In other words, they have to make unpopular decisions that ultimately seek to bring long-term benefits to the economy. However, once President-elect Trump returns to the White House, the independence the Fed has maintained for many years could be compromised.
Trump's statement was posted on CNN: “I think the president should at least have a say. I feel very strongly,” Trump said about the Fed's interest rate decision at a press conference in August.
Trump added: “I make a lot of money, I'm very successful and I think in many situations I have better abilities than the people at the Fed or the president.”
Analysis of technical prospects for
XAUUSD After yesterday's strong price drop, gold has all the technical conditions to decrease in price through the price channel. The fact that gold was sold below the price channel and the 21-day moving average (EMA21) caused the bullish price structure to be completely broken.
Currently, gold is recovering slightly after receiving support from the 0.618% Fibonacci retracement level, and once this level is further broken below, gold tends to continue to decline with a subsequent target level of around 2,600 USD around the 0.786% Fibonacci retracement area.
On the other hand, the Relative Strength Index continues to point downward after breaking the 50 level, which should be considered a negative signal for gold as the RSI's next target is 25. Showing that the downward momentum remains quite wide in the front.
In the near future, technically, gold has the potential to decrease in price with the price channel being the short-term trend.
As long as gold remains in the price channel and below the EMA21 level, the bearish outlook will still be prioritized, and the notable points will be listed as follows.
Support: 2,640 – 2,645USD
Resistance: 2,668 – 2,684 – 2,697USD
SELL XAUUSD PRICE 2708 - 2706⚡️
↠↠ Stoploss 2711
→Take Profit 1 2701
↨
→Take Profit 2 2696
BUY XAUUSD PRICE 2637 - 2639⚡️
↠↠ Stoploss 2633
→Take Profit 1 2644
↨
→Take Profit 2 2649
Note
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Note
XAUUSD | ✅️The market has basically digested most of the news and will fall into a state of short-term fluctuations in the short term.Note
Gold plummeted below 2,680 USD/ozNote
The world gold market witnessed the second consecutive decline in price on Monday, as investors are holding their breath waiting for US economic data and important statements from Fed officials this week, in order to looking for clearer signals about the future interest rate direction of the world's leading economy.Note
Gold prices remained stable after falling 2.5% in the previous session. The DXY index rose to its highest level in a year as the market expected the USD to continue to appreciate due to the impact of Trump's trade tariff policies, along with US economic growth. A stronger USD makes goods priced in this currency more expensive for international investors.
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