Gold prices have seen a slight decline today, with spot gold trading down 0.3% at $2,672.25 per ounce and U.S. gold futures dropping 0.6% to $2,692.70 as of 0914 GMT. Despite the dip, gold remains on track for a weekly gain, fueled by anticipation of the U.S. Federal Reserve’s upcoming policy meeting.
The Fed is widely expected to deliver its third rate cut of the year, a move that has underpinned bullion’s appeal. Notably, gold reached a five-week high in the previous session, spurring profit-taking and subsequent price adjustments.
Weekly Overview
Gold has risen over 1% this week, demonstrating resilience amidst market uncertainties. The five-week high indicates strong bullish sentiment, but the recent pullback suggests a healthy correction before the market determines its next direction.
Technical Analysis: 1-Hour Time Frame
On the 1-hour chart, gold appears to be gravitating toward a supply zone between $2,700 and $2,711. This range represents a critical resistance area, where selling pressure is likely to increase. The price action in this zone will be pivotal in defining short-term market sentiment.
Key Observations:
Supply Zone: $2,700 - $2,711.
Downward Target:If gold fails to break above the supply zone, the likely move will be a short towards $2,680. This level represents a strong support zone, aligning with recent price activity and technical indicators.
Indicators: Momentum indicators such as RSI and MACD suggest overbought conditions as the price approaches the $2,700-$2,711 zone, further supporting the case for a pullback.
Trading Strategy
For traders, the current market setup presents both opportunities and risks:
Short Positions: Consider entering short positions if gold shows rejection at the $2,700-$2,711 supply zone, targeting $2,680. A tight stop-loss above $2,711 is recommended to manage risk.
Watch for Breakouts: If gold breaks above $2,711 with strong volume, it could signal a continuation of the bullish trend, invalidating the short bias.
Final Thoughts
Gold’s performance this week highlights its role as a safe-haven asset in the face of macroeconomic uncertainties. The Fed’s policy meeting next week will likely be a significant driver of gold’s trajectory. While the immediate technical outlook suggests a potential pullback, traders should remain vigilant and adapt to evolving market conditions.
The Fed is widely expected to deliver its third rate cut of the year, a move that has underpinned bullion’s appeal. Notably, gold reached a five-week high in the previous session, spurring profit-taking and subsequent price adjustments.
Weekly Overview
Gold has risen over 1% this week, demonstrating resilience amidst market uncertainties. The five-week high indicates strong bullish sentiment, but the recent pullback suggests a healthy correction before the market determines its next direction.
Technical Analysis: 1-Hour Time Frame
On the 1-hour chart, gold appears to be gravitating toward a supply zone between $2,700 and $2,711. This range represents a critical resistance area, where selling pressure is likely to increase. The price action in this zone will be pivotal in defining short-term market sentiment.
Key Observations:
Supply Zone: $2,700 - $2,711.
Downward Target:If gold fails to break above the supply zone, the likely move will be a short towards $2,680. This level represents a strong support zone, aligning with recent price activity and technical indicators.
Indicators: Momentum indicators such as RSI and MACD suggest overbought conditions as the price approaches the $2,700-$2,711 zone, further supporting the case for a pullback.
Trading Strategy
For traders, the current market setup presents both opportunities and risks:
Short Positions: Consider entering short positions if gold shows rejection at the $2,700-$2,711 supply zone, targeting $2,680. A tight stop-loss above $2,711 is recommended to manage risk.
Watch for Breakouts: If gold breaks above $2,711 with strong volume, it could signal a continuation of the bullish trend, invalidating the short bias.
Final Thoughts
Gold’s performance this week highlights its role as a safe-haven asset in the face of macroeconomic uncertainties. The Fed’s policy meeting next week will likely be a significant driver of gold’s trajectory. While the immediate technical outlook suggests a potential pullback, traders should remain vigilant and adapt to evolving market conditions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.