Gold Remains Bullish, But Market Needs Correction Before New ATHGold continues to trend upward with consecutive higher highs and higher lows, but a deeper correction may be necessary before the next major bullish leg can begin with conviction.
Price action on gold remains firmly in a bullish structure. The market has consistently produced strong impulses followed by shallow pullbacks, signaling aggressive buyer interest. However, from a technical trading perspective, current levels may not offer ideal long entries without a corrective move first. A deeper pullback toward support would reset momentum and offer higher probability setups for trend continuation.
Key Technical Points:
- Support Zone at $3,177: Daily support with swing low and 0.618 Fibonacci confluence
- 50 MA + 51 EMA Support: Dynamic moving averages guiding the higher low structure
- Potential Liquidity Sweep: A dip below daily support could trap bears before continuation
Gold’s current uptrend is well-defined, with a clear structure of higher highs and higher lows. Each dip has been aggressively bought, and the market has continued climbing with little resistance. However, this type of trend often leads to overextension, and traders are beginning to look for a corrective pullback to create a more sustainable setup.
The $3,177 support level is the key zone to watch. Not only does this level represent a daily horizontal support, but just below it sits a key swing low and the 0.618 Fibonacci retracement of the most recent leg higher. This area could serve as a prime candidate for a liquidity sweep—where price briefly dips to trap breakout sellers before reversing back upward.
Adding to this, the 50-day moving average and the 51-day exponential moving average are both supporting the trend and aligning with the higher low formation. These moving averages have been providing dynamic support throughout this rally, acting as a technical guide for buyers.
While there is always the possibility that gold continues higher from current levels, a pullback toward the $3,177 area would provide a healthier setup. It would allow the market to reset, rebalance, and potentially attract sidelined buyers who missed the initial move. Such a correction would preserve the higher low structure while maintaining bullish integrity.
What to Expect in the Coming Price Action:
If gold holds above the $3,177 support zone, the bullish trend may resume without deeper retracement. However, a brief dip below that level to sweep liquidity could offer the best long opportunity. Until a corrective move confirms, traders should remain cautious of chasing highs without a valid structure reset. Long bias remains intact as long as the higher low structure holds.
CFDGOLD trade ideas
XAU/USD Analysis – June 30, 2025✅ Primary Scenario (Bearish Bias):
Short-term move up expected:
Price is expected to fill the Fair Value Gap (FVG) around 3,305 – 3,306.
This level aligns with a key resistance zone and also the 0.618 Fibonacci retracement, making it a strong area for a potential bearish reaction.
Downtrend continuation:
If price reacts from the resistance zone, we expect the downtrend to continue, targeting:
📍 3,256 – liquidity zone
📍 3,245 – additional liquidity below
📍 3,228 – unfilled FVG
XAUUSD📉 The Setup: Bullish Divergence on XAUUSD (15m/30m)
Buy only on Breakout
🔍 Observation:
On the 30-minute timeframe, price made a lower low while the RSI indicator printed a higher low — classic sign of bullish divergence 🔄.
💡 Translation: Bears are losing steam! Bulls may be preparing to charge in! 🐂⚡
📊 Trade Plan – Long Entry
GOLD The ADP Non-Farm Employment Change for July 2,have a forecast of 99,000 jobs, compared to the previous month’s very weak result of 37,000—the lowest since March 2023. The ADP National Employment Report is a monthly indicator that tracks changes in non-farm private sector employment in the US, based on anonymized payroll data from ADP’s clients, covering about one-fifth of all US private employment.
Who is responsible?
The report is produced by the ADP Research Institute, part of Automatic Data Processing (ADP), in partnership with the Stanford Digital Economy Lab.
Why it matters:
The ADP report is viewed as a leading indicator for the official Non-Farm Payrolls (NFP) report from the Bureau of Labor Statistics (BLS), released two days later.
It provides early insight into US private sector job growth and labor market health, and significant deviations from forecasts can move financial markets.
Note that the ADP report covers only private sector jobs, not government employment, so its numbers can differ from the official NFP.
Summary Table:
Report Date Forecast Previous Responsible Department
July 2, 2025 99,000 37,000 ADP Research Institute (ADP)
In summary:
The ADP Non-Farm Employment Change report, produced by the ADP Research Institute, forecasted a rebound to 99,000 jobs in June after a very weak 37,000 in May, providing an early signal on the health of US private sector employment.
(2)US10Y drops to historical low to 4.193% and currently broken 1hr descending trendline at 4.281% ,4.3% resistance will be watched for breakout buy bond buyers.
(3) DXY Key Points:
The DXY measures the US dollar’s strength against a basket of six major currencies: the euro (57.6% weight), Japanese yen (13.6%), British pound (11.9%), Canadian dollar (9.1%), Swedish krona (4.2%), and Swiss franc (3.6%).
After peaking near 110.075$ in January 2025, the index has softened , trading near 96.600-101.966.on weekly TF 101.966 was a retest to broken weekly demand floor .
The dollar’s decline reflects market expectations of Federal Reserve rate cuts later in 2025, easing inflation pressures, and some geopolitical easing.
the DXY to rebound will henge and depend on Fed policy and global economic conditions.
GOLD buyers are watching for the direction of trade ,
Chinese Demand and Policy:
China is one of the largest gold consumers and holders. Domestic demand, central bank gold purchases, and monetary policy in China heavily influence XAU/RMB. If China’s economy slows or trade tensions with the US worsen, demand for gold as a safe haven may increase, supporting XAU/RMB even if the dollar is strong.
China's recent opening of the Shanghai Gold Exchange's (SGE) first offshore gold vault in Hong Kong on June 26, 2025, represents a significant development with potential, albeit indirect, implications for XAU/USD (gold priced in US dollars) .
Key Aspects of the Hong Kong Gold Vault:
Location and Operation: The vault is located in Hong Kong and operated by Bank of China's Hong Kong unit .
Yuan-Denominated Trading: All transactions and settlements in the vault are denominated exclusively in yuan, either via cash or physical bullion delivery . Two new yuan-denominated gold trading contracts were launched alongside the vault .
Strategic Objectives:
Increased Influence on Gold Pricing: China, as the world's leading gold producer and consumer, aims to gain greater control and influence over global gold pricing mechanisms .
Yuan Internationalization: The initiative seeks to accelerate the international usage of the yuan, supporting China's broader de-dollarization efforts . This allows China to import gold in yuan, reducing reliance on the US dollar for commodity trading .
Enhanced Global Reach: The vault expands the SGE's physical infrastructure beyond mainland China, creating a new gateway for international gold trading and solidifying Hong Kong's role as a key financial hub .
Physical Settlement: It facilitates the physical settlement of gold contracts outside mainland China .
Implications for XAU/USD:
While the new vault directly promotes yuan-denominated gold trading, its implications for XAU/USD are primarily indirect and long-term:
De-dollarization Efforts: By promoting yuan-denominated gold trading, China is actively working to reduce global reliance on the US dollar in commodity markets . If successful, a more diversified global gold trading landscape could gradually diminish the dollar's sole influence over gold prices, potentially leading to less direct inverse correlation between the dollar and gold .
Increased Demand and Liquidity: The vault aims to attract more international participants to yuan-denominated gold markets, potentially increasing overall gold demand and liquidity in the Asia-Pacific region . While this demand is primarily yuan-driven, a generally stronger global gold market could indirectly support XAU/USD .
Report - 27 june1.
Bond Market Exodus: Why Investors Are Ditching US Long-Term Debt
In Q2 2025, net outflows from US long-dated bond funds hit $11 billion, marking the fastest pace since early 2020. This comes despite more than $39 billion pouring into short-dated funds, which are still yielding attractive real returns due to the Fed's high policy rate.
This flight from the long end is not just about yield differentials — it’s a clear repricing of sovereign risk and fiscal sustainability. The market is beginning to fear that the US is no longer a guaranteed safe haven at the long-duration end of the curve. President Trump’s renewed tax policies — projected to add trillions to the national debt — are weighing on confidence, while incoming tariffs and the risk of structurally higher inflation amplify concerns.
“There is a lot of concern domestically and from the foreign investor community about owning the long end of the Treasury curve.” – Bill Campbell, DoubleLine
Market Implication: The term premium is re-emerging — longer bonds must offer significantly higher yields to attract buyers. In real terms, longer-dated Treasuries are down ~1% this quarter, clawing back losses after tariff-induced volatility in April.
Strategic Allocation:
Stay overweight short-duration debt (SHY, BIL, floating-rate notes) for yield preservation and minimal duration risk.
Avoid duration extension. TLT, ZROZ, and long-dated corporates may face additional downside as issuance ramps and demand fades.
Consider non-dollar fixed income exposure (e.g., EU sovereigns, South Africa, Brazil), particularly where inflation targeting credibility is rising.
Macro Impact:
This shift jeopardizes debt affordability. With $33 trillion in debt and rising interest expense, the US could face debt spiral risks unless inflation softens or fiscal discipline returns. An elevated term premium can ripple into mortgages, corporate borrowing, and municipal finance, potentially crowding out private investment.
2.
Geopolitical Tensions: Iran's Nuclear Program and the Market's Response
Despite US claims of obliterating Iran’s nuclear capabilities in recent strikes, preliminary European intelligence indicates Iran’s 408kg stockpile of highly enriched uranium remains largely intact. It was reportedly dispersed before the attacks — undercutting the narrative of complete neutralization.
President Trump’s remarks, suggesting “nothing was taken out” of the main Fordow facility due to logistical constraints, reflect a public relations overstatement rather than a decisive strategic victory. While US defense officials stand by the attack’s symbolic impact, reports suggest the nuclear program was set back by months, not years.
“Trump exaggerated because he needed to... Anyone who heard his remarks could tell there was a different reality.” — Ayatollah Ali Khamenei
Market Implication:
The gold price remains elevated, closing at $3,328.22, up 0.15% on the day, and +26.81% YTD — a clear hedge against geopolitical instability.
Oil markets initially spiked but reversed as the Israel-Iran ceasefire held. Brent Crude ended at $67.14, down -6.1% over the week.
Defense stocks, particularly in US and Israeli names, are seeing flows as investors anticipate further defense budget expansions.
Strategic Allocation:
Hold or overweight gold (GLD, XAUUSD) in strategic portfolios as a volatility hedge.
Avoid chasing oil at interim highs unless further strikes materialize — use energy exposure as a short-term trade, not a structural bet.
Monitor Iranian retaliation risk and its effect on shipping lanes, which would impact insurance costs and transport-linked equities.
Macro Impact:
With Iran's capacity largely intact, nuclear diplomacy is effectively frozen. The uncertainty adds to regional instability, and markets may underprice the risk of a re-escalation. Meanwhile, continued weapons development forces global powers to shift attention (and potentially resources) away from economic diplomacy.
3.
US Export Collapse: Trade Policy Bites the Domestic Economy
In May, US goods exports fell by $9.7 billion (–5.2%), marking the largest monthly decline since the pandemic crash in 2020, according to the Census Bureau. Exports totaled $179.2 billion, sharply down from April’s figures.
This contraction followed President Trump’s "Liberation Day" tariff blitz, which spooked global trading partners. Despite some tariff suspensions, others — such as a blanket 10% duty and sector-specific metals tariffs — remain active.
“Amid the de-escalation phase of the tariff story, we are now seeing an unwind in both imports and exports.” — James Knightley, ING
Key Export Drivers:
Industrial supplies (crude oil, metals): Down 13.6% in May after a 16% surge in April.
Vehicle exports: Rebounded +3.5% after a 20% drop in April.
Trade deficit: Widened to $96.6 billion, above expectations.
Practical Market Implications:
Logistics & industrial names (FedEx, Caterpillar) face short-term margin pressure.
Commodities sensitive to trade flows — particularly metals — could see softening demand (watch steel and copper ETFs like SLX and COPX).
Dollar exposure may become more volatile as lower exports pressure the current account, contributing to a weaker dollar narrative.
Broader Economic Impact:
With inventories full and international demand softening, US manufacturing will decelerate.
Capex and employment in export-sensitive sectors are at risk if the trade environment doesn’t stabilize.
Investor Strategy:
Short-term caution on transportation (e.g., FedEx reported a sharp drop in China-US freight).
Reallocate toward domestic-facing sectors (utilities, consumer staples) that are more insulated from trade.
Currency traders may view this as a signal to fade the USD if combined with Fed dovishness.
4.
US Debt Avalanche: The Bond Exodus and What It Means for Markets
Investors are rapidly fleeing long-term US bonds, with net outflows reaching $11 billion in Q2, the sharpest retreat since early 2020, according to EPFR data. This comes amid growing concern over the US’s ballooning debt load, worsened by Trump’s proposed tax cuts and trade tariffs.
“It’s a symptom of a much bigger problem... concern about owning the long end of the Treasury curve.” — Bill Campbell, DoubleLine
Why It Matters:
Trump's tax plan is forecast to add trillions to federal debt, compelling the Treasury to issue a flood of bonds.
Simultaneously, tariffs are feared to fuel inflation, which erodes bond values — especially those with long durations.
Market Movement:
Long-term US debt fell ~1% in Q2 (Bloomberg index).
In contrast, short-term US bond funds gained $39 billion in inflows, driven by high yields at the front end of the curve.
“With inflation still above target and heavy government supply, this is driving skittishness about the long end.” — Robert Tipp, PGIM
Practical Investment Outlook:
Expect higher yields at the long end of the curve if debt issuance remains elevated and inflation expectations rise.
Flattening yield curve risk if short-end rates remain high while long-end selling continues.
Duration-sensitive portfolios (e.g. pensions) may suffer performance drag unless repositioned.
Global Spillovers:
A weaker long bond market raises benchmark rates globally, making it costlier for emerging markets to borrow.
Foreign investors (e.g., Japan and China) may diversify out of Treasuries, potentially moving capital into higher-yield EM debt or European assets.
The sell-off contributes to dollar weakness, especially when coupled with trade disruptions and Trump’s criticism of the Fed.
Investor Strategy:
Reduce duration exposure; consider floating-rate notes or shorter-dated fixed income instruments.
Explore international bonds, especially EM local currency debt, which is currently outperforming.
Use steepening yield curve trades (e.g., 2s/10s steepeners) as a way to hedge fiscal risks.
5.
Iran’s Nuclear Resilience: What Intel and Markets Tell Us
Despite claims from President Trump that Iran’s nuclear capabilities were “obliterated” in recent airstrikes, early intelligence assessments suggest otherwise. According to European and US officials, Iran’s 408kg stockpile of near-weapons-grade uranium remains largely intact, having been dispersed to other locations before the strikes.
“It did not achieve anything... Trump exaggerated.” — Ayatollah Ali Khamenei
Strategic Interpretation:
US and Israeli strikes targeted Fordow, Natanz, and Isfahan — key nuclear infrastructure.
While significant damage occurred, no total structural collapse was confirmed.
This reinforces that Tehran maintains breakout capacity, and could resume enrichment rapidly if it chose to.
“The nuclear programme suffered enormous damage... but not complete destruction.” — Rafael Grossi, IAEA
Market Impact and Geopolitical Outlook:
The revelation that Iran’s uranium reserves survived the assault reduces confidence in the effectiveness of US deterrence.
Oil markets remain unfazed. Traders priced in the symbolic nature of Iran’s missile response and read the US-Israel actions as limited in strategic disruption.
Brent crude fell sharply by 6.1% to $67/bbl post-ceasefire — evidence markets anticipate no extended supply shock.
What to Expect:
Volatility premium on oil is falling. No major disruption to Strait of Hormuz = no major repricing.
Increased likelihood of backchannel diplomacy, especially as Tehran seeks to assert survival and avoid regime destabilization.
However, shadow escalation (e.g., cyber, proxy strikes) remains plausible.
Practical Asset Implications:
Oil traders are in sell-the-spike mode: Risk-on reactions are now short-lived.
Defensive commodity plays (e.g., gold) saw a pullback as perceived geopolitical risk faded.
Military-industrial equities may experience cooling momentum unless new threats emerge.
Risk of sanctions rollbacks or renegotiations could reprice energy and emerging market assets tied to Iran’s trade (e.g., India, China).
6.
Export Shock: Tariffs Bite into US Trade Performance
US goods exports plummeted by 5.2% in May, marking the sharpest drop since 2020, as President Trump’s aggressive “Liberation Day” tariff strategy triggered a major disruption in global demand for American goods. Total exports fell to $179.2bn, down $9.7bn from the prior month.
Breakdown:
Industrial supplies (including oil and metals): –13.6%
Vehicles: +3.5% (recovering from a –20% collapse in April)
Trade deficit widened to $96.6bn, beating Wall Street expectations.
“This is the tariff shock starting to filter into real data.” — ING’s James Knightley
Economic Implications:
Tariff retaliation and inventory overhang are key drivers of the export decline.
Partners reduced US imports anticipating further tariffs or supply chain reshuffles.
The loss of export revenue compounds fiscal stress, especially with simultaneous tax cuts and increased military spending.
Sectoral Risks:
Energy exporters (e.g., Texas oil firms) are hit hard — crude exports falling.
Industrial metals and machinery producers face slower foreign orders.
Shipping and logistics (e.g., FedEx) flagged the US–China lane as the weakest and most unpredictable trade route.
Market Outlook:
Dollar weakness persists, with the Dollar Index near a 3-year low, reflecting investor fear over twin deficits (fiscal + trade).
Equities may remain resilient, especially domestically focused or tariff-insulated names.
However, multinationals with global exposure could underperform due to shrinking foreign sales.
What to Expect:
Volatility in trade data until clarity returns on tariff regimes.
Renewed calls for bilateral trade talks or exemptions from key US partners (e.g., EU, Mexico).
Watch for nearshoring trends to accelerate as companies avoid tariff risk.
7.
EM Rally: Emerging Markets Outshine Developed Peers Amid US Fiscal Anxiety
In a stunning reversal of past trends, emerging market (EM) assets are rallying across asset classes in 2025 — defying both the global macro gloom and the shadow of US tariff policy.
By the Numbers:
JPMorgan EM Local Bond Index: +10% YTD
MSCI EM Equity Index: +10%
MSCI World (Developed Markets): +4.8%
EM bonds in global AUM: Rising from a low 5% share
This rotation reflects a clear diversification trend away from dollar assets, fueled by erratic US policymaking, record federal debt, and a weakening dollar. The Treasury-specific risk premium is rising — and EMs are absorbing the flow.
Drivers of the Rally:
Dollar weakness: Eases FX pressure, gives central banks room to cut.
Inflation-adjusted yields in EMs at 20-year highs, making debt highly attractive.
Declining fiscal risks in EMs contrast with ballooning G7 debt burdens.
China and South Korea lead equity optimism with innovation themes and policy clarity.
“Even small inflows are having disproportionately large effects.” — Goldman Sachs’ Kevin Daly
Risks and Rotation:
Geopolitical conflict in the Middle East did not dent EM flows — a clear sign of confidence in regional resilience.
Oil prices falling reduced tail risks for EM energy importers like India and South Korea.
Still, EM equity outflows in Q1 were sizable (–$22bn), only partially reversed in May–June (+$11bn net).
Practical Strategy for Investors:
Local currency bonds in Brazil, South Africa, Indonesia — rich yields, FX tailwinds.
Tech-heavy equity plays in China and Taiwan — exposure to global AI boom.
EM corporates still lag — cautious positioning advised due to higher default risk.
What to Watch:
Further EM policy easing, especially in Asia, will support equities.
US yield volatility may occasionally disrupt flows, but the narrative has shifted.
Multi-asset portfolios should consider overweighting EM exposure tactically in H2 2025.
8.
Shell, Sovereign Risk, and the Oil Sector Outlook: BP Takeover Denied, Sector Under Pressure
Shell’s explicit denial of takeover talks with BP, despite media speculation, offers clarity but also raises key strategic questions for the European energy sector. The sector continues to grapple with sluggish price action, mounting decarbonization pressures, and a renewed focus on capital discipline.
Key Takeaways:
Shell stated it had “no intention” of acquiring BP and had not been in talks, invoking a six-month standstill period under UK takeover law.
BP shares rose 1.3%, Shell +0.5%, largely a relief rally and not based on synergies.
This quells short-term merger speculation, but it underscores the pressure on oil majors from activist investors (e.g., Elliott’s 5% stake in BP) demanding deeper cuts, higher returns, and optionality in energy transition strategy.
“Shell has preferred buybacks to acquisitions.” — Wael Sawan, CEO
Sector-Wide Implications:
BP’s aggressive renewables push has backfired, denting valuation and making it a takeover target.
Oil majors are capital-rich but investment-conservative, amid uncertain demand outlook and energy policy volatility.
High integration costs and risk of job losses are politically toxic, limiting mega-deal feasibility.
Practical Market Interpretation:
With Brent crude hovering around $68–$70, oil equities remain valuation-sensitive and vulnerable to dividend cuts or FX shocks.
Investors should favor capital-efficient names with strong free cash flow and disciplined buyback programs.
Avoid speculative merger plays; instead, track cost reduction execution and decarbonization pace.
What to Watch:
Further activist pressure on BP and Total to streamline operations.
Potential US M&A activity in smaller shale players instead of global giants.
Any signs of OPEC+ discord or US SPR use amid volatile demand expectations.
9.
New World Development: Hong Kong’s Property Giant Faces Systemic Risk
New World Development (NWD), one of Hong Kong’s largest property conglomerates, is undergoing a delicate refinancing operation amid ballooning debt, weak property sales, and a declining tourism-reliant retail economy. The implications ripple across the Asian credit markets, Chinese property sector, and Hong Kong's financial stability.
Key Financials:
Net debt: HK$124.6bn
Refinancing talks: HK$87.5bn in bank loans
Interest costs > operating profits in 2H FY2024
Annual loss: HK$20bn, the first in two decades
Shares down 22% YTD, market cap ~HK$14bn
The developer’s leverage and stalled mainland China expansion expose it to credit market deterioration, at a time when trust in property-linked balance sheets is thin.
“It won’t be a question of how much you’re willing to pay — the cover won’t be available.” — Everest CEO Jim Williamson, referring to US casualty insurance but resonant here too.
Systemic Concerns:
Barclays estimates NWD accounts for 7% of all HK commercial property loans — nearly double Evergrande’s systemic exposure in mainland China.
Property defaults or asset fire-sales could cause bank provisioning hikes, spread to retail REITs, and exacerbate deflationary pressures.
Mitigating Actions:
NWD pledged flagship assets (e.g., Victoria Dockside) as collateral.
Actively selling projects at discounts.
Chow Tai Fook Enterprises selectively buying assets, indirectly supporting liquidity.
However, refusal to engage with bondholders, deferred perpetual interest payments, and a leadership reshuffle have eroded market confidence.
Strategic Implications for Investors:
Avoid unsecured Chinese real estate debt—bondholder transparency is poor.
Favor secured exposure or government-backed REITs tied to stable rental income.
Look for HKMA guidance: policymakers are signaling banks to avoid panic provisioning, implying the government will step in to prevent contagion.
Broader Macro Read:
Reflects fragility of China’s "recovery-lite" property model, where urban development exceeds real demand.
HK real estate’s softening is also a proxy for declining mainland tourism, rising capital costs, and shifting investor preferences.
10.
Meta’s Copyright Win: Legal Green Light for AI Model Training
Meta's recent legal victory over authors suing for unauthorized use of books in AI training marks a critical turning point in the legal framework surrounding AI development. The U.S. District Court ruled that the tech giant’s use of millions of texts to train its LLaMA models constituted “fair use”, delivering a massive tailwind to AI innovation — and to equity investors betting on the sector.
Case Summary:
Plaintiffs included notable authors like Ta-Nehisi Coates.
Meta trained its AI on LibGen-sourced books without permission.
Judge Chhabria: Ruled for Meta due to “poor argumentation” by plaintiffs — not because the court inherently favored AI use.
“This ruling does not stand for the proposition that Meta’s use of copyrighted materials to train its language models is lawful. It stands only for the proposition that these plaintiffs made the wrong arguments.” — Judge Vince Chhabria
Precedent and Practical Impact:
Reinforces the fair use doctrine for transformative technologies.
Encourages aggressive data utilization strategies by other firms.
Raises the bar for future copyright suits, requiring stronger arguments like market harm (e.g., reduced author royalties).
Implications for Tech and Equity Markets:
AI development costs may fall sharply as legal uncertainty fades.
Generative AI leaders (Meta, Anthropic, OpenAI) now face fewer near-term litigation barriers.
Paves the way for AI ETF inflows, bolsters AI-leveraged tech indices (e.g., SOXX, QQQ).
Equity long positions in semis (NVDA, AMD), cloud (MSFT, GOOGL), and enterprise AI (CRM, ORCL) become even more strategic.
Regulatory Outlook:
A longer-term battle is likely over “market dilution” claims.
Courts may soon have to decide whether AI-generated outputs undermine economic incentives for human creators.
Policy frameworks from the EU or US Congress are likely within 12–18 months.
Strategic Takeaways for Investors:
Increase exposure to AI infrastructure (e.g., Nvidia, Micron, Arista).
Maintain vigilance on evolving IP litigation trends — regulatory tone may shift depending on 2025 political outcomes.
Avoid over-concentration in companies still facing unresolved copyright or data privacy battles (e.g., Open-source LLMs with gray training data).
11.
ETF Innovation: ‘Autocallables’ Go Retail – A Structural Shift in Yield Exposure
The launch of the first US-listed ETF tracking autocallable structured products by Calamos Investments, with JPMorgan support, signals a transformative shift in how retail investors access complex income strategies. Once limited to ultra-high-net-worth clients, these derivatives — with yields near 14.7% — are now democratized through a simple ticker trade.
What Are Autocallables?
Autocallables offer periodic coupons unless a linked index (e.g., S&P 500) falls below a pre-set barrier. If the barrier is breached consistently, investors risk losing principal. They are akin to structured credit instruments but are tied to equity indices, not borrowers.
Triggered by market declines.
Maturity: typically 3 years, quarterly checks.
Final protection barrier: ~60% of starting level — breach = principal loss.
ETF will hold 52+ autocallables diversified by issuance date.
Investment Mechanics:
Calamos Autocallable Income ETF (CAIY) charges 0.74% annual fee — above the average for US derivative-income ETFs (0.51%).
It’s part of a wider trend: structured outcome ETFs have exploded from $3.5bn in 2019 → $179bn today (Morningstar).
Mimics yield exposure of high-yield bonds, but linked to equity volatility.
Analyst Commentary:
Ben Johnson, Morningstar: “ETFs are taking share from all financial products — not just mutual funds, but also from bespoke structured notes.”
Elisabeth Kashner, FactSet: warned of misunderstanding risks: “Advisers will struggle to explain these. If markets fall, protection and yield disappear.”
Practical Implications:
Retail investors gain access to high-yielding structured credit proxies.
If adopted at scale, this could divert flows from traditional high-yield bonds and annuities.
Volatility derivatives embedded in autocallables will impact options markets and hedging strategies.
Risk Outlook:
In a sharp downturn, coupon stops and capital protection collapses — potentially leading to double-digit losses.
These ETFs may suffer sudden illiquidity if linked indices breach multiple trigger levels at once.
Systemic Considerations:
Broad adoption of these ETFs could amplify equity downside during sharp corrections — as dealers hedge risk via S&P futures.
Scenario: A systemic correction triggers autocallable barrier breaches, prompting delta-hedging cascades → market destabilization.
Investor Strategy:
Use as non-core, tactical exposure for income in low-volatility environments.
Monitor S&P drawdowns and ETF option volumes for stress signals.
Avoid relying on these instruments for downside protection in portfolios targeting retirement stability.
12.
Wall Street Outlook: Dollar Slide, Powell Speculation, and Inflation Signaling
Markets steadied this week as geopolitical tensions cooled with the Iran-Israel ceasefire, but underlying stress in key asset classes persists — particularly in foreign exchange and rate-sensitive sectors. Traders are recalibrating for what could be a pivot in US monetary policy, as political noise intensifies over Fed leadership and dollar weakness accelerates.
Dollar Pressure Deepens:
The US Dollar Index slid to a three-year low, falling 0.5% after the Wall Street Journal reported that President Trump may replace Fed Chair Jay Powell earlier than expected.
The euro surged to $1.1710, its strongest level since September 2021.
“We suspect that some of this narrative is seeping into perceptions,” said Macquarie’s Thierry Wizman, pointing to speculation over Fed independence.
This decline is especially concerning given the rebound in Treasury yields, which would traditionally support the greenback. Instead, we are witnessing a breakdown in classic correlations, as political interference becomes a dominant narrative.
Powell’s Job and Policy Path:
The idea of a “shadow chair” to pressure the Fed into rate cuts has unnerved institutional allocators. The White House denied imminent changes but confirmed the president’s “right to change his mind.”
This raises risk premiums around Fed credibility, especially with inflation still a threat and growth signals weakening.
Any leadership uncertainty at the Fed historically results in higher long-end yields due to perceived policy drift or political bias.
Safe Havens and Gold Dynamics:
Gold fell 0.2% to $3,324/oz, losing some haven allure post-ceasefire.
Continued outflows are expected unless inflation data surprises to the upside or Fed intervention appears politically constrained.
Equity Markets:
S&P 500 closed just under its all-time high, up 0.6%.
Risk-on sentiment is heavily liquidity-driven, with AI optimism (led by Nvidia) adding a secondary tailwind.
Oil and Inflation:
Brent crude rebounded to $68.49/bbl, up 1.2%, despite subdued supply risk.
Inflation-linked assets remain moderately priced, but any disruption to the Strait of Hormuz or further US-China escalation could reignite tail-risk pricing.
Practical Implications:
Dollar weakness can spur a rotation into EM equities, gold, and real assets.
Investors should brace for increased FX volatility and repricing of global rate differentials.
Portfolios with high USD exposure may benefit from increased geographical diversification.
TIPS and short-duration Treasuries become more attractive as stagflation hedges in case Powell is replaced with a dovish successor.
Analysis of gold price rise and fall on MondayAnalysis of gold price rise and fall on Monday
The probability distribution of gold price trend next Monday is as follows:
Probability of rise: 55%-60%.
Support factors include: the expectation of Fed rate cuts has been strengthened, the dollar is weak, the tariff deadline is approaching, triggering safe-haven demand, and the momentum of short-term rebound in the technical aspect.
Probability of decline: 35%-40%.
Risk factors include: strong resistance at 3360 points on the technical side, temporary relief of geopolitical risks, and profit-taking pressure.
Probability of sideways fluctuation: 5%-10%.
If there is a lack of catalysts, the gold price may fluctuate in the range of 3310-3360, waiting for new clues.
Operation strategy reference:
Long position strategy: If the gold price falls back to the 3310-3315 area and stabilizes, you can go long with a light position, set the stop loss below 3300, and the target is 3325-3330 (it can go up to 3335-3340 after breaking through).
Short-selling strategy: If the gold price rises to the 3350-3360 range, you can short with a light position, set the stop loss above 3360, and target 3325-3330 (after breaking through, look down to 3310--3300-3280).
Fundamentals
Weight analysis of key influencing factors:
Subsequent impact of US non-farm payrolls data: If the detailed interpretation of non-farm data next Monday continues to ferment, it may provide support for gold.
Expected changes in the tariff decision on July 9: Next Monday will be the last trading day before the suspension of US trade tariffs (July 9), and market concerns about the Trump administration's possible increase in tariffs may heat up.
Any relevant news or official statements may trigger safe-haven funds to flow into gold.
Key technical game:
The battle between the $3310 support level and the $3360 resistance level will continue to dominate the short-term trend.
If the opening price remains above the 3330-3340 range next Monday, it may test the 3360 resistance; if it falls below 3310, it may fall to the 3280 support.
Trends of the US dollar index and US Treasury yields: The US dollar index has recently fallen to a two-year low (96.875), and US Treasury yields have also fallen (10-year yields are 4.228%). If this trend continues, it will be good for gold.
Geopolitical risk dynamics: Although the situation in the Middle East has not escalated further, it is still in a tense state, and sudden news may disrupt the market at any time.
Gold at Key Level Before NFP – Big Move Loading ?📉 Fundamental Analysis
Gold remains in a strong bullish structure, supported by multiple macroeconomic and political drivers:
ADP Employment Report Missed Expectations: With a shocking -33K reading, market sentiment shifted firmly against the US Dollar, pushing gold higher.
Fed’s Easing Outlook: Markets are now pricing in a 90% probability of a rate cut in Q3, weakening real yields and supporting demand for gold.
Trump’s “Super Bill” Momentum: Political cohesion among Republicans has re-ignited fiscal stimulus expectations, fuelling concerns over long-term US debt sustainability—another tailwind for gold as a safe haven.
🧠 Smart Money Technical Framework (H1)
Price has moved into a Premium FVG Zone, showing signs of potential exhaustion after forming a clear CHoCH and bullish BOS. The current zone (3,375 – 3,376) aligns with a mid-risk sell region, where price may experience short-term rejection before revisiting demand zones.
Market structure suggests liquidity sweep potential towards the downside before any continuation of the larger bullish trend.
📊 Trading Strategy – Smart Money Zones & Key Levels
🔵 BUY SCALP: 3,334 – 3,333
🔴 SL: 3,329
✅ TP: 3,340 → 3,344 → 3,350 → 3,360
🔵 BUY ZONE LOW RISK: 3,317 – 3,316
🔴 SL: 3,311
✅ TP: 3,320 → 3,325 → 3,330 → 3,336 → 3,345 → 3,350 → 3,360
🔴 SELL SCALP ZONE: 3,375 – 3,376
🔴 SL: 3,380
✔️ TP: 3,370 → 3,366 → 3,360 → 3,355 → 3,350
🔴 SELL ZONE HIGH PROBABILITY: 3,388 – 3,390
🔴 SL: 3,394
✔️ TP: 3,384 → 3,380 → 3,376 → 3,370 → 3,366 → 3,360
📌 Notes:
Be cautious ahead of NFP data and the upcoming US bank holiday—expect liquidity traps and sudden volatility.
This setup is ideal for intraweek scalping and liquidity-based reversals.
All trades follow Smart Money Concepts logic: premium vs. discount zones, CHoCH + BOS confirmations, and institutional order flow anticipation.
XAUUSD Today's strategyGold prices are consolidating around $3,350 today, with the current resistance level above seen at $3,370 and the support level below at $3,340.
From a technical perspective, the 4-hour chart shows an ascending triangle pattern, with the bottom gradually lifting. If the price can effectively break through the $3,370 resistance, it is expected to subsequently launch an assault on the $3,400 integer mark. In terms of technical indicators, the RSI currently stands at 58, which has not yet entered the severely overbought range, suggesting there is still room for upward movement; the MACD indicator also shows that bullish momentum is slowly recovering, waiting for a breakout signal to confirm the direction.
On the operational front, considering going long around $3,340 could be a viable option. It is particularly important to note that the U.S. non-farm payroll data will be released today, which may have a significant impact on the short-term trend of gold. It is advisable to liquidate positions and wait on the sidelines before the data release to avoid potential risks from sharp fluctuations.
XAUUSD
buy@3335-3345
tp:3360-3370
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Gold Sell- look for sell
- Refine entry with smaller SL for better RR, if you know how
- keep looking for sell even if price goes one more up
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XAUUSD - SELL After a reasonable big run up like this they will take profits
Looks like it's roiling over watching Super Trend and break of
Buffer Zone with Bearish Continuation Candle can easily Shoot back up if Wicks but should be plenty of room to make money on this one.
Hardest part is being patient
Selling seems to capitulate everyone wants to capture as much profit as possible or should I say Algo's
NY also current session so they have plenty of push and Greedy as can be !
USD has turned Strong for now also
Don't forget to protect profits when you deem fit should it run into profit trading Forex - Gold is very unpredictable their game is to take yr money deliberately - do the opposite just to snag yr hard earned cash.
Lets See : )
Short gold, it will fall again when encountering resistanceIn the short term, gold retreated to around 3274 and then rebounded again, and it is only one step away from 3300. Will gold regain its bullish trend again?
I think it is difficult for gold to break through in the short term. Although gold retreated to around 3274 and successfully built a double bottom structure with the second low point and the low point of 3245, it only increased the rebound space; it is not enough for gold to regain its bullish trend. Since gold fell and broke through, the confidence of bulls has been hit hard. The previous support at the technical level has formed a strong resistance area after the top and bottom conversion, and to a certain extent helped the short force. In the short term, gold faces resistance in the 3310-3320 area. Before gold breaks through this area, the short energy still has the upper hand.
Therefore, shorting gold is still the first choice for short-term trading.
It is appropriate to consider shorting gold in batches in the 3300-3320 area, and look at the target: 3385-3375-3365
DeGRAM | GOLD broke the demand zone📊 Technical Analysis
● Price sliced beneath the long-term rising‐channel base and the triangle apex, turning 3 300-3 310 into fresh supply; the current pull-back is a textbook bearish retest of the break zone.
● Hourly structure now tracks a new descending trend-line; failure to reclaim 3 300 keeps momentum pointed to the next fib / horizontal shelf at 3 280, with the channel width projecting 3 245 support.
💡 Fundamental Analysis
● Rebound in US 2-yr yields after hawkish Fed speakers and a stronger-than-expected durable-goods print lifted the DXY, reducing short-term bullion appeal.
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Gold Market Analysis Current Price: 3341.58
Market Behavior:
The price is ranging sideways, trading in a tight consolidation zone just below the resistance zone (around 3344).
Key Resistance Levels:
3344 → Immediate resistance
3348 – 3352 → Next minor supply zone
3357 – 3360 → Strong resistance ahead (if breakout occurs)
Key Support Levels:
3332 – 3330 → Short-term demand
3324 – 3320 → Stronger support zone
📌 Trader Insight:
"Gold is in a consolidation phase between 3330 and 3344. Wait for a confirmed breakout above 3344 for bullish momentum toward 3357+. If rejected again, expect a retest of support near 3332 or deeper."
✅ Trade Setup (Example):
Buy Scenario (Breakout):
Entry: Above 3345
Target: 3357
Stop Loss: Below 3338
Sell Scenario (Rejection):
Entry: Near 3344 resistance, if rejected
Target: 3332 / 3324
Stop Loss: Above 3348
BREAK THE HIGHI can see gold getting ready to move upside again. If it's in our favour, check the reaction above the price of 3425. it may give other continuation thee above price 3425 to move more upside
OANDA:XAUUSD FOREXCOM:XAUUSD FXOPEN:XAUUSD FOREXCOM:XAUUSD
As always, market wins! trade with care. be a part of the market
Embracing Uncertainty
In trading, the illusion of certainty is often our biggest enemy.
Even the cleanest setups—like a MTR (Major Trend Reversal)—can fail.
Mark Douglas said it best:
“Anything can happen.”
This simple truth is what keeps professional traders humble and disciplined.
Respect the market, manage your risk, and never assume you know what comes next.
Stay sharp.
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Gold Loses Its Luster as Risk Appetite Takes ControlAlthough inflation in the US continues to rise, the personal consumption expenditures (PCE) price index data for May showed that the core PCE increased to 2.7%, exceeding forecasts, but the market still does not expect the Fed to cut interest rates soon.
The USD slightly decreased, bond yields remained stable, but gold prices failed to take advantage of these supporting factors. According to experts, market sentiment is leaning towards risky assets, as US stocks hit a peak and US-China trade relations have positive developments. This is the main reason for the decline in safe-haven demand for gold.
Currently, the gold market is in a tug-of-war state, waiting for stronger signals from inflation, geopolitical tensions or global economic instability to determine the next trend. If there are no major fluctuations in the near future, gold may continue to adjust in the short term, especially when the technical resistance zone has not been broken.
Personally, I see that the money flow is temporarily stopping in gold and gradually shifting to growth assets. And if there is no strong enough “push”, gold will continue to move in this short-term downtrend for a while longer.