The Bullion on the Rise Again📊 FX:XAUUSD Gold (XAU/USD) Weekly Market Update
Hey traders,
While I couldn’t prepare our usual video analysis, here’s a detailed breakdown of the Gold market alongside chart snapshots.
Last week, Gold revisited the 2615 level, near the 38.2% Fibonacci zone , which turned out to be yet another bear trap. Many shorts got liquidated, as seen in the surge in short volume.
Thanks to our strategy, we stuck with the trend, entering at 2629 . We’re now running a strong 400 pips Open P/L , with Gold currently heading towards the 26.2% Fibonacci zone.
🔑 Key Levels to Watch:
Minor resistance expected at 2685 and 2710 before reaching the 2750 target profit.
🔍 Fundamental Backup to Our Trade:
1️⃣ Geopolitical Tensions:
Escalating Middle East instability: Rebel forces ousted President Bashar al-Assad in Syria, heightening fears of broader regional uncertainty.
Safe-haven demand for Gold surged as investors sought security amidst these developments.
2️⃣ China's Gold Purchases:
China's central bank resumed gold acquisitions in November after a six-month break, providing additional bullish momentum.
3️⃣ Dovish U.S. Monetary Policy:
Friday’s U.S. jobs report indicated softening labor market conditions, fueling expectations for a 25-basis-point rate cut at the Fed’s final meeting this year.
Lower interest rates enhance Gold’s attractiveness as a non-yielding asset.
🔮 Potential Scenarios:
Bullish: Sustained geopolitical instability and dovish monetary policy may drive Gold above the 50-period SMA (~$2,678) and closer to our target.
Bearish: A reduction in geopolitical risk premium or sticky inflation could pressure Gold toward the 100-period SMA (~$2,586)- very unlikely.
Stay sharp, watch these levels, and trade smart! 💡
🧠 Let’s Collaborate!
What’s your take on GOLD this week? Share your ideas and charts below in comment. Let’s discuss whether we’re headed to new highs or revisiting support levels!
Cheers,
The NFX Team™ 💚
