We could expect more continuation to the downside in XAUUSD
Updated
The reasons why we can expect gold to see more downward movement are as follows:
Decreasing inflation: If inflation expectations decrease, it can reduce the demand for gold as a hedge against currency devaluation and as a safe haven during inflationary periods. Reduced demand for gold due to decreased inflation concerns could exert downward pressure on its price.
Expectations of a gradual interest rate increase: If the Federal Reserve (Fed) is expected to gradually raise interest rates, it can make bond investments and other alternatives more attractive compared to gold, which does not generate interest or dividends. A higher interest rate environment could reduce the demand for gold and therefore influence a bearish trend in its price.
Bearish structure in higher timeframes: If the trend in higher timeframes, such as daily or weekly charts, shows a bearish structure, traders and technical investors may interpret this as a signal that the price of gold could continue to decrease. However, it's important to remember that technical analysis has limitations and is not always a guarantee of future price movements.
These reasons provide context for a potential bearish movement in the price of gold, but it's important to consider that the market is complex and subject to a multitude of factors. Economic conditions, geopolitical events, and other catalysts can influence the direction of the gold price. Additionally, market behavior can be unpredictable, and there is no guarantee that expectations will be fulfilled in all cases. It's essential to conduct thorough analysis and consider multiple factors before drawing conclusions about gold price trends.
Decreasing inflation: If inflation expectations decrease, it can reduce the demand for gold as a hedge against currency devaluation and as a safe haven during inflationary periods. Reduced demand for gold due to decreased inflation concerns could exert downward pressure on its price.
Expectations of a gradual interest rate increase: If the Federal Reserve (Fed) is expected to gradually raise interest rates, it can make bond investments and other alternatives more attractive compared to gold, which does not generate interest or dividends. A higher interest rate environment could reduce the demand for gold and therefore influence a bearish trend in its price.
Bearish structure in higher timeframes: If the trend in higher timeframes, such as daily or weekly charts, shows a bearish structure, traders and technical investors may interpret this as a signal that the price of gold could continue to decrease. However, it's important to remember that technical analysis has limitations and is not always a guarantee of future price movements.
These reasons provide context for a potential bearish movement in the price of gold, but it's important to consider that the market is complex and subject to a multitude of factors. Economic conditions, geopolitical events, and other catalysts can influence the direction of the gold price. Additionally, market behavior can be unpredictable, and there is no guarantee that expectations will be fulfilled in all cases. It's essential to conduct thorough analysis and consider multiple factors before drawing conclusions about gold price trends.
Note
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The trade reached the first tp idea before triggering our entry. I will proceed to cancel it
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