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Preparing for the Worst: Trading Ahead of a US Debt Default "It is impossible to predict with certainty the exact date when Treasury will be unable to pay the government's bills," Treasury Secretary Janet Yellen said in a letter to Congress. Although Yellen noted a tentative date of June 1 as the due date to help spur lawmakers into action. While it is highly unlikely that the US will default on its debt, this doesn’t mean that the traders won’t make plans to deal with a default or get jittery. Two likely markets that will have to deal with the moves from these investors will be forex and gold. If uncertainties about an unprecedented potential U.S. debt default persist, the US dollar might lose some of its safe haven status which would possibly shift to gold. US President Joe Biden plans to meet with House Democratic leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer and Republican leader Mitch McConnell on May 9. This will be a key date to watch the US dollar and gold in case the group come to some kind of agreement to increase the debt ceiling. With the US being the bedrock of the whole world’s financial system, we might also expect to see investors' jitters manifest in offshore-based assets too. Other safe havens such as the Japanese yen, the Swiss franc, and particularly the euro might be prime candidates for inflows.
by BlackBull_Markets
Gold Analysis This is an update to the previous analysis I posted last week. (Link below the post) So Far Macro Value Area high along with 0.618 has been acting as strong support and Gold is just ranging in a tight 30 usd range. It has tested that level several times now. The more time a level is tested the weaker it gets also RSI has been making lower lows for a while and has not broken the downward trendline yet. So, my bais has not changed and I am still expecting a move to the downside. FED meeting on Wednesday may provide the required catalyst for a decisive move. On a cautious note: If the final move is to the downside, then we must be aware of the stop hunt to the upside first which gold likes to do based on my experience. I have a setup for that in the chart, but it can go as high as the current top into the trendline above it (2068) before a big and fast move down. Also, even though RSI has been lower lows, its slowly moving towards oversold territory, so if FED's announcement is not favorable for dollar, then We should see a decisive move to the upside. Either way we should be ready for all possibilities especially near an event like FOMC. I have over 6 years of trading and investing experience and have learned a lot in this time. I like to share what I have learned and if you like my content and would like to learn from my experience hit like and follow me for getting notified on my trade, market projections and several upcoming tutorials on technical analysis and several technical Indicators. you can also leave a comment and let me know if you want me to analyze any specific asset or want to learn about any specific topic in the world of Technical Analysis. I Will do my best to create a post for it. Keep learning and Happy trading All.
OANDA:XAUUSD
by zakoraio