XAU/USD | GOLDSPOT | New perspective | follow-up details
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Gold surged on Friday, reaching its highest level since early January, surpassing
2,080 as the 10−year US Treasury bond yield dropped by approximately 1.52% following the release of mixed economic data. S&P Global's report indicated an expanding US economy, while the Institute for Supply Management (ISM) highlighted a contraction in manufacturing activity, overshadowing the former report.
S&P Global's announcement on Friday showcased the fastest improvement in manufacturing conditions since July 2022. The Manufacturing PMI for February rose to 52.2 from 50.7, whereas the ISM February Manufacturing PMI declined to 47.8 from 49.1.
This data prompted a rise in Gold prices as US Treasury bond yields plummeted on expectations of earlier-than-expected rate cuts. Additionally, the Fed's latest Monetary Policy Report suggested cautious optimism regarding inflation control, despite lingering challenges in the tight labor market.
Considering these developments and the upcoming week packed with high-impact events, the question arises: How will Gold, as a safe-haven asset, perform in this market scenario? This video will shed light on navigating the current market dynamics from a technical perspective.
XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviors, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,080 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, a breach below the $2,080 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
#GoldMarket #SafeHavenAssets 📺🔔💼
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
2,080 as the 10−year US Treasury bond yield dropped by approximately 1.52% following the release of mixed economic data. S&P Global's report indicated an expanding US economy, while the Institute for Supply Management (ISM) highlighted a contraction in manufacturing activity, overshadowing the former report.
S&P Global's announcement on Friday showcased the fastest improvement in manufacturing conditions since July 2022. The Manufacturing PMI for February rose to 52.2 from 50.7, whereas the ISM February Manufacturing PMI declined to 47.8 from 49.1.
This data prompted a rise in Gold prices as US Treasury bond yields plummeted on expectations of earlier-than-expected rate cuts. Additionally, the Fed's latest Monetary Policy Report suggested cautious optimism regarding inflation control, despite lingering challenges in the tight labor market.
Considering these developments and the upcoming week packed with high-impact events, the question arises: How will Gold, as a safe-haven asset, perform in this market scenario? This video will shed light on navigating the current market dynamics from a technical perspective.
XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviors, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,080 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, a breach below the $2,080 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
#GoldMarket #SafeHavenAssets 📺🔔💼
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Note
The price of gold has been range-bound and consolidating last week's gains, oscillating within the range of 2,086 and 2,079.50. Currently, the US Dollar's strength remains compromised following the disappointing release of the US ISM survey on Friday and less-hawkish remarks by Federal Reserve officials. This weaker Dollar stance acts as a supportive factor for gold prices.With mounting expectations for a potential shift in the Federal Reserve's policy stance, the US Dollar may find it challenging to gain significant momentum. Additionally, a subdued sentiment in the equity markets further bolsters the appeal of gold as a safe-haven asset. However, any substantial rise in US Treasury bond yields restrains further upside potential for gold.
Market participants are likely to await further guidance on the Fed's approach to interest rate adjustments, leading to prolonged sideways trading ahead of key US macroeconomic events scheduled for this week. This cautious stance could limit the upside for gold, especially in anticipation of Fed Chair Jerome Powell's semi-annual congressional testimony scheduled for Wednesday and Thursday.
In this regard, the question at this juncture is whether the consolidation phase will evolve into either a trend continuation pattern or a reversal pattern. As such, we shall remain patient for signals to clarify the direction in which gold prices may move next.
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Two buy positions triggered at the break of $2,086 and $2,088 level; running with over 220pips profit. Protect positions now as we look out for additional entries. Update coming soonTrade active
#XAUUSDUPDATE
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Third position now triggered at the $2,101 level; protect all positions now
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Having accumulated over 600 pips in profit from four buy positions, it's prudent to safeguard our profits. Gold prices are mirroring the corrective movements observed on Monday, as the US Dollar tentatively rebounds amidst a risk-averse market backdrop and subdued US Treasury bond yields.Typically, a downturn in equity markets tends to bolster demand for safe-haven assets.
Meanwhile, the US Dollar continues to struggle in gaining significant momentum amid growing expectations of interest rate cuts by the Federal Reserve (Fed), possibly commencing in June. This anticipation provides additional support to gold prices. However, market participants may refrain from aggressive bullish bets, opting instead to await further clarity on the Fed's rate-cutting trajectory. Therefore, all eyes are on Fed Chair Jerome Powell's upcoming two-day congressional testimony.
Given the current scenario, it's prudent to protect all buy positions while staying alert for new trading opportunities. With trading activity possibly reaching overbought levels, a correction to consolidate recent gains appears imminent
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UPDATEFifth position triggered; safeguard more profit
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Gold prices took a dip during the Asian trading session, reversing some of the gains from the previous day. This could be attributed to some profit-taking activities amid extremely overbought conditions on the higher timeframe.Investors may become hesitant and wait for clearer signals regarding the Federal Reserve's potential interest rate cuts before making new trading decisions. Hence
attention is fixed on Fed Chair Jerome Powell's upcoming congressional testimony. His remarks will heavily influence the short-term movement of the US dollar and set the tone for market direction.
Sentiments are gradually leaning toward the Fed's start cutting interest rates in June, especially after some disappointing economic data from the US on Tuesday. This expectation, along with worries about geopolitical tensions and a slowdown in China, is helping to support gold prices.
While we're keeping our existing buy positions secure, we're also paying attention to the levels on the charts for guidance. We'll discuss this trading strategy more during our next live session. See you there!
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#XAUUSDSTRUCTURAL UPDATE
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#XAUUSDMore buy positions now triggered, protect all positions as we look out for new opportunities
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#XAUUSDOne more position triggered; secure all buy positions now!
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The price of gold continues its upward trend for the seventh consecutive day, reaching a new all-time high near $2,161.30. Federal Reserve Chair Jerome Powell's recent congressional testimony reinforced expectations for a potential interest rate cut later this year. This has put pressure on the US Dollar (USD), making gold more attractive to investors. Additionally, ongoing geopolitical tensions in the Middle East and worries about a slowdown in China are supporting gold prices.However, Minneapolis Fed President Neel Kashkari played down speculation about aggressive policy easing, which, coupled with a slight increase in US Treasury bond yields, is limiting the downside for the US Dollar and preventing gold from rising further. Despite this, the precious metal remains in a highly overbought state on longer timeframes.
We'll delve into these market dynamics further during our upcoming live session today!
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#XAUUSDSTRUCTURAL UPDATE | 15 min Timeframe
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#XAUUSDBuy triggered; secure position
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After experiencing a couple of losses following yesterday's choppy market condition, gold seems to be back on track as it breaks the 2,158.50 level one more time for buying opportunities, thanks to a weaker US Dollar. This decline in the US Dollar, along with lower US Treasury bond yields, is giving gold some support. Additionally, there's growing anticipation for the Federal Reserve (Fed) to cut interest rates, possibly starting in June, which is driving up demand for gold.Fed Chair Jerome Powell hinted that the central bank is close to feeling confident that inflation will reach its target of 2%, which could prompt them to lower interest rates.
Moreover, Chinese investors are turning to gold as a safe-haven amidst turmoil in the property and stock markets in China. Geopolitical tensions in the Middle East are also contributing to this demand for safe-haven assets.
Market participants are eagerly awaiting the US Nonfarm Payrolls (NFP) data today, which is expected to show an addition of 200,000 jobs to the US economy. Currently, the momentum seems to favor higher gold prices. However, if the NFP data comes in stronger than expected, it could strengthen the US Dollar and put downward pressure on gold prices.
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#XAUUSDSTRUCTURAL UPDATE | 15min Timeframe
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