XAUUSD | GOLDSPOT | New perspective | follow-up detailsOn Thursday, Fed Chair Jerome Powell joined his teammates in endorsing a stable interest rate policy, providing further support for the XAUUSD. Amidst increasing geopolitical risks, with the conflict between Israel and Hamas spreading to more countries in the region, Gold extended its weekly rally and reached the $1,990 area for the first time in five months on Friday. This surge in Gold prices is driven by safe-haven flows as investors seek to reduce risk exposure, combined with a downward correction in US yields.
Additionally, Atlanta Fed President Raphael Bostic has indicated the possibility of a rate cut in 2024, suggesting a potential shift in monetary policy if economic conditions warrant it. Cleveland Fed President Loretta Mester has also expressed that the Federal Reserve may be at or near the peak of its rate hike cycle, emphasizing that the central bank will closely depend on incoming data for its decision-making process in the next monetary policy meeting.
As we look ahead, this week's economic calendar will feature key events such as US flash PMI data, the release of Q3 Gross Domestic Product (GDP) on its preliminary reading, Durable Goods Orders, unemployment claims, and the Fed's preferred gauge for inflation, the core PCE.
XAUUSD Technical Analysis:
In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities.
The $1,985 zone will remain our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then the breakout of the $1,985 will serve as a platform for new highs. However, if selling pressure persists below $1,985 just as it had done in the last 5 months $1,900 we could witness renewed selling pressure back into the demand zone at the $1,900 zone.
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