XAUUSD: Extends upside as Greenback dips ahead of US factory for OANDA:XAUUSD by Shinobi_Pips

XAUUSD: Extends upside as Greenback dips ahead of US factory

Gold price (XAU/USD) discovers support around $1,950.00 as the robust performance of the United States in the April-June quarter was offset by soft consumer spending data. The precious metal is under pressure as the US Dollar capitalizes on upbeat Gross Domestic Product (GDP) numbers and a robust Durable Goods Orders report.

United States factory activities have been contracting for the past eight months due to the aggressive rate-tightening cycle by the Federal Reserve (Fed). The manufacturing sector is broadly expected to continue reporting a vulnerable performance as firms struggle to tap credit due to the twin headwinds of higher interest rates by the Fed and tighter credit conditions among US regional banks.

SELL 1973 - 1976

TP1 : 1969
TP2 : 1965

SL : 1980

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Gold price finds pressure above $,1,960 as investors shift focus to the July Manufacturing PMI reported by the United States Institute of Supply Management (ISM), which will be published on Tuesday at 14:00 GMT.

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HIT TP2 . +100PIPS ✅✅✅

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US factory activities are consistently facing the wrath of higher interest rates by the Federal Reserve.

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China, India news weigh on XAU/USD

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Gold price is still in a correction phase after creating a double top pattern at the 1972 price range to the maximum, now the price is trading in 1957, the structure is still falling and there is no sign of turning up again.

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The precious metal was under pressure as the ADP report showed that the number of jobs in the private sector increased sharply in July. Specifically, there were 324,000 jobs created last month. The data significantly beat economists' expectations that about 191,000 would be generated. Newly released numbers showing the health of the job market continue to support expectations that the US Federal Reserve (FED) will continue to raise interest rates more.

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It can be seen that the gold market is facing a kind of "headwind" as the use of resilience, a healthy labor market and strong economic activity support the positive monetary policies of the United States. feed. Even so, TD Securities, a Canadian investment bank, still finds factors supporting gold reaching record highs later this year.

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TD Securities' bullish outlook for gold comes as the Fed says its monetary policy decisions in September will depend on upcoming data. Markets expect that the US Central Bank will keep rates unchanged for the next 2 months and there is only a 60% chance of raising rates again this year.

Shinobi_Pips

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