Xauusd trend in European and American trading sessions - uptrendGold news:
🔆The recent decline in Gold prices appears to be driven by profit-taking as traders adjust their positions ahead of this week's first key economic release from the US – the S&P Global Preliminary business PMIs.
🔆This data could shift market attention back to the Federal Reserve’s stance on interest rate cuts, especially after the January meeting minutes did little to change expectations of two rate reductions this year. The minutes reaffirmed the Fed's cautious approach, stating that "many participants noted that the committee could maintain a restrictive policy rate if the economy remained strong and inflation stayed elevated," particularly in response to Trump’s trade policies.
🔆Despite this, ongoing expectations of two Fed rate cuts in 2025 continue to provide support for non-yielding Gold prices. Any short-term downside reaction to strong PMI data may be limited, as fresh developments regarding US President Donald Trump’s proposed tariffs could emerge, reinforcing safe-haven demand for Gold.
🔆Trump’s tariff discussions, along with geopolitical uncertainties surrounding the Russia-Ukraine peace negotiations, have contributed to Gold’s record-breaking rally.
Personal opinion:
🔆The RSI indicator is in the sell zone and will remain until the US session. Therefore, Gold will have a slight decline to gain momentum for the main trend. In general, any decline in gold prices can be considered a buying opportunity in the near future.
Technical analysis:
🔆Based on resistance - support zones and important Fibonacci levels combined with trend lines to come up with a suitable strategy.
Plan:
🔆 Price Zone Setup:
👉Buy Gold 2918 – 2920 (European session)
❌SL: 2914 | ✅TP: 2925– 2930 – 2940
👉Buy Gold 2905 – 2907
❌SL: 2899 | ✅TP: 2913– 2920 – 2930
👉Sell Gold 2968 – 2970
❌SL: 2975| ✅TP: 2963– 2958 – 2950
