Long

Corrected, GOLD recovered and the trend remained unchanged

Updated

XAUUSD significant downside correction and recovery from the key technical area around the 0.786% Fibonacci extension.
Mainly influenced by the strengthening of the US Dollar and US bond yields, along with the easing of tensions in the Middle East were the main reasons why gold prices fell sharply on Wednesday. In addition, gold prices have recently risen too sharply, technical indicators have become overbought and part of the market has chosen to take profits.

Markets are also concerned that the US presidential election in November could be competitive and it could take some time to determine a winner.
Bloomberg reported that the US presidential election in November is entering its final weeks, the race between former President Trump and Vice President Kamala Harris is taking place extremely fiercely.
A Bloomberg News/Morning Consult poll shows the two candidates are statistically tied in seven battleground states.
In all seven states, the two candidates are neck and neck, with both candidates receiving 49% support from likely voters. The poll's overall margin of statistical error is 1%.

However, the market also remains concerned that the conflict between Israel and Iran could escalate into a wider war.
Despite the short-term correction, gold prices have increased more than 30% since the beginning of this year, continuously reaching new highs. Gold's rally has strengthened over the past few months as the Federal Reserve moved to reduce interest rates.
Fund managers have also contributed to gold's rally, as hedge funds increased their net long positions in gold in recent sessions and investors increased their holdings of exchange-traded funds (ETFs).

Analysis of technical prospects for XAUUSD
On the daily chart, gold corrected significantly after the Relative Strength Index showed gold was in the overbought area (75%). However, the correction does not bring many opportunities for further price declines as the slope of the RSI is relatively low and shows signs of bending upward, depicting a weakening sell-off sentiment.

On the other hand, gold is still above the short-term trend price channel. Note to readers in previous publications on the price channel. As long as gold remains in this price channel, its short-term trend is still bullish.

The lower edge of the price channel is also confluent with the 0.786% Fibonacci extension, making this an important support area.

Although gold has adjusted down, all short-, medium- and long-term conditions and trends are still in favor of price increases. Notable levels will be listed again as follows.
Support: 2,711 – 2,700USD
Resistance: 2,741 – 2,748 – 2,758USD

SELL XAUUSD PRICE 2741 - 2739⚡️
↠↠ Stoploss 2745

→Take Profit 1 2734
↨
→Take Profit 2 2729

BUY XAUUSD PRICE 2680 - 2682⚡️
↠↠ Stoploss 2676

→Take Profit 1 2687
↨
→Take Profit 2 2692

Trade active

Plan SELL +20pips🔽🔽🔽

Trade closed: target reached

Plan SELL Hit Full TP2 + 120pips🤕🤕🤕. Congratulations everyone

Note

Note

The precious metal came under pressure early Friday, as sellers returned after gold prices failed to break out of the $2,740 resistance zone. The market is turning its attention to new US economic data and statements from Fed officials in search of fresh impetus for XAU/USD.

Note

Gold prices increased to above 2740 USD/oz after bottoming around 2717 during the session as concerns about escalating tensions in the Middle East have subsided somewhat. However, traders are still wary of the risk of Israel "retaliating" against Iran.

Note

🔴Spot gold fell to 2,725 USD/ounce, down 0.62% on the day.

Note

XAU/USD recovered during the session and climbed above the $2,740/oz mark entering Monday's European session.

Note

Gold prices recovered to approach the session's peak

Note

World gold prices have continued to expand their upward momentum, fluctuating around the threshold of 2,750 USD/ounce. Currently, traders are waiting for a series of US economic data this week to get more information about the future policy direction of the US Federal Reserve (Fed). Key data to be released this week include the private sector jobs report, core personal consumption expenditures figures and nonfarm payrolls.

Xayah_trading

🔰| Forex trading

🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate

🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1

Also on:

Related publications

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.