Hello everyone, as we all know the market action discounts everything :)
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The Gold market has started to gain some upper movement after the inflation numbers from the USA have been published on Friday (6.8). But the dollar is still pushing strong with will probably affect the gold market to drop until we hear from the Fed meeting this week.
Possible Scenario for the market :
The market is trading at 1787.85, we might see a further push that will lead the gold price to reach the first resistance located at 1794.27, and if the dollar gets weaker then we will probably see a further push that would reach the 1818.44 levels.
But we might see strong resistance and the main cause for it the that the dollar is gaining strength, which will lead the gold price to drop back to the 1767.51 level.
Technical indicators show :
1) The market is above the 5 10 MA and EMA (Bullish short-term) But still below the 20 50 100 and 200 MA and EMA (Bearish short-term)
2) The RSI is at 47.24 showing that weakness is still in the market but it is gaining more strength by the day.
3) the MACD is below the 0 line indicating a Bearish state in the market with a positive crossover that explains the gains that is happening right now.
Support & Resistance points :
support Resistance
1) 1770.10 1) 1794.27
2) 1757.68 2) 1806.02
3) 1745.93 3) 1818.44
Fundamental point of view :
the US Federal Reserve downplayed inflation concerns, arguing that price pressures were transitory and that they would dissipate with supply bottlenecks getting resolved in early 2022. However, it didn’t take long for the Fed to acknowledge that high inflation was likely to persist for longer than estimated.
Although gold managed to attract demand as a traditional inflation hedge, rising US Treasury bond yields limited XAU/USD’s upside. Investors started to price a sooner-than-expected policy tightening following the Fed’s decision to reduce asset purchases by $15 billion per month from November and the dollar capitalized on rising yields.
In late November, the detection of a highly-mutated coronavirus variant in South Africa triggered an intense flight to safety and helped the precious metal stay resilient against the greenback.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The Gold market has started to gain some upper movement after the inflation numbers from the USA have been published on Friday (6.8). But the dollar is still pushing strong with will probably affect the gold market to drop until we hear from the Fed meeting this week.
Possible Scenario for the market :
The market is trading at 1787.85, we might see a further push that will lead the gold price to reach the first resistance located at 1794.27, and if the dollar gets weaker then we will probably see a further push that would reach the 1818.44 levels.
But we might see strong resistance and the main cause for it the that the dollar is gaining strength, which will lead the gold price to drop back to the 1767.51 level.
Technical indicators show :
1) The market is above the 5 10 MA and EMA (Bullish short-term) But still below the 20 50 100 and 200 MA and EMA (Bearish short-term)
2) The RSI is at 47.24 showing that weakness is still in the market but it is gaining more strength by the day.
3) the MACD is below the 0 line indicating a Bearish state in the market with a positive crossover that explains the gains that is happening right now.
Support & Resistance points :
support Resistance
1) 1770.10 1) 1794.27
2) 1757.68 2) 1806.02
3) 1745.93 3) 1818.44
Fundamental point of view :
the US Federal Reserve downplayed inflation concerns, arguing that price pressures were transitory and that they would dissipate with supply bottlenecks getting resolved in early 2022. However, it didn’t take long for the Fed to acknowledge that high inflation was likely to persist for longer than estimated.
Although gold managed to attract demand as a traditional inflation hedge, rising US Treasury bond yields limited XAU/USD’s upside. Investors started to price a sooner-than-expected policy tightening following the Fed’s decision to reduce asset purchases by $15 billion per month from November and the dollar capitalized on rising yields.
In late November, the detection of a highly-mutated coronavirus variant in South Africa triggered an intense flight to safety and helped the precious metal stay resilient against the greenback.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.