💡 XAUUSD: Retest the lower resistance zone
Updated
A sharp interest rate cut by the Federal Reserve will have a negative impact on the US dollar, and even a moderate loosening policy can cause the US dollar to decline. If economic activity and inflation are lower than expected, the Federal Reserve could reduce interest rates. A strong USD is unlikely to return, and gold prices may continue to fluctuate amid clues about the FED's first interest rate cut.
We can see gold retreated after failing to recover and running near the 48-hour moving average on the H4 chart. In addition, the MACD double line and the energy column hover around the zero axis. If central banks maintain a common view that interest rate cuts will be implemented as soon as possible, this could put pressure on gold from yield perspective. Currently, the SELL strategy can be applied, requiring stop loss.
We can see gold retreated after failing to recover and running near the 48-hour moving average on the H4 chart. In addition, the MACD double line and the energy column hover around the zero axis. If central banks maintain a common view that interest rate cuts will be implemented as soon as possible, this could put pressure on gold from yield perspective. Currently, the SELL strategy can be applied, requiring stop loss.
Note
World gold prices increased after many days of selling pressure to take profits. Gold increased as investors waited for US economic data to be released at the end of the week. These data will be the basis for the US Federal Reserve (Fed) to decide to cut interest rates sooner or later.Note
The DXY index - which measures the movement of the USD against a basket of 6 major currencies, decreased to 103 points, after rising to 103.4 in the previous session.Note
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