XAUUSD | GOLDSPOT | New perspective | follow-up details

Updated

In Friday's session, the XAUUSD experienced a slight uptick, closing the week at $1,980 after reaching a high of $1,995. However, this price increase was halted by hawkish comments from Federal Reserve officials, following the release of strong US housing data that led to a modest rise in US Treasuries.

October's Housing Starts showed a 1.9% increase compared to September's 3.1% rise, while Building Permits rose by 1.1% after a 4.5% decline in the previous reading.

Federal Reserve Bank of Boston President Susan Collins noted evidence suggesting favorable financial conditions for the Fed and welcomed the recent cooling in inflation. However, she also mentioned that she would not rule out additional firming, which caused some concern in the markets.

Overall, the XAUUSD continues to exhibit a bullish bias.

XAUUSD Technical Analysis:
In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities.

The $1,980 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then the breakout/retest of this zone and $1,992 will serve as a platform for new highs. However, if the price breaks down the $1,980 and selling pressure persists below the zone, we could witness renewed selling pressure back into the demand zone at the $1,900 zone.

Dive into the latest Gold market dynamics! Discover how escalating Middle East tensions and renewed decline in 10-year Treasury yields and their impact. Stay informed for strategic investment decisions.
#GoldMarket #SafeHavenAssets #USDebt 📺🔔💼

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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.

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Note

The upward momentum of gold prices in the Asian session appears to have stalled, with prices remaining below the crucial level of 1,980 for the week. However, there was some buying interest when the price dipped near the $1,973 mark.

The potential for significant corrective movements seems constrained due to the Federal Reserve's dovish expectations and the increasing consensus that the central bank will maintain its current stance at the December 2023 policy meeting and likely initiate interest rate cuts in 2024.
As discussed in the video, the trading activity is at a critical point, with price action hovering around both the week's key level of 1,980 and the resistance line of the descending channel on the 4H timeframe. Consequently, a simple range has been identified on the 1H timeframe, which will serve as a guide for our trading decisions today.

Good Morning.

Trade active

UPDATE

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UPDATE

Safeguarding the sell position in anticipation of a structural retest, aiming to sustain the bearish momentum. However, a breakout/retest of the 1,980 zone will negate the bearish set-up and could incite buying opportunities.

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Gold prices continue their upward momentum, building on the overnight bounce from the $1,973 area and gaining significant traction during the Asian session. The buying pressure has effectively nullified the initial sell position from yesterday's session at breakeven. As anticipated in our previous live session, the breakout of the 1,980 level has triggered our first buy position, resulting in two buy positions currently running with a total profit of 160 pips.

The surge in Gold's favor is fueled by speculations of an earlier rate cut by the Federal Reserve (Fed), potentially as soon as March 2024. This dovish outlook, accentuated by a decline in US Treasury bond yields, remains a pivotal factor driving investors toward the safe haven asset.

While the path of least resistance for this asset appears to be upwards, there may be a degree of caution among market participants, refraining from aggressive bets ahead of the FOMC meeting minutes today due to uncertainty surrounding the timing of the Fed's monetary policy easing. In this context, it is prudent to
protect all positions while closely monitoring price action for potential new trading opportunities.

Good Morning

Trade active

UPDATE

Buying pressure resumes above the 1,985 zone and the ascending trendline

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UPDATE

Two buy position triggered; protect positions

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#XAUUSD

UPDATE

Over 120 pips profit from two positions, protect positions as we look out for new trading opportunities.

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three buy positions = approximately 300 pips; protect positions

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UPDATE

Trade closed manually

The price of gold struggled to build on yesterday's gains and fluctuated between small increases and decreases during the Asian session. Trading remained below the $2,000 mark following the release of hawkish FOMC meeting minutes on Tuesday, which indicated a commitment to tighten policy further if inflation control progress stalls. The news triggered a rally in US Treasury bond yields and prompted some short-covering in the US Dollar, though the initial market reaction faded quickly.
As a result, the price action appears to be experiencing a retracement phase after being taken out of all buy positions with a considerable amount of profit. However, we can not ignore the potential for a sell-off due to the hawkish outlook from the FOMC meeting minutes. At this juncture, patience is necessary, and we will be monitoring the character of price action within the 2,000 and 1,993.50 zone, with the ascending trendline serving as our guide for today.

Good Morning

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#XAUUSD

The buy position is running in a loss as selling pressure persist. Ensure the sell positions are in place to capture the bearish should price action drop. Levels indicated on the chart guides our decision.

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UPDATE

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My Last Update for today:

Two sell positions triggered with a total of 80pips running; protect positions

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In response to growing sentiments that the Federal Reserve won't pursue further interest rate hikes, Gold prices rebounded in the Asian session, countering the retracement seen the previous day. This dynamic, accompanied by the 10-year US government bond yield hovering near a two-month low, contributes to Dollar weakness and supports safe-haven assets like Gold.
However, gold is still trading below the $2,000 psychological mark, which may signal caution for bullish sentiment.
From a technical perspective, a potential reversal pattern is forming on the 1-hour time frame, with the price retesting the 1,996 zone. If successful, we may witness a sell−off today. However, a move above the 2,010/2,000 zone could indicate further buying opportunities. We will be discussing this in more detail during our upcoming live session this morning. Stay tuned.

Good Morning

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Yesterday's sell position struggled to gain traction, grappling with the challenges posed by low market liquidity during the US Thanksgiving holiday. Despite this, the precious metal managed to secure modest gains in the wake of a weaker US Dollar. However, the ascent lacked sustained momentum, leaving Gold below the psychological $2,000 mark as sellers faced resistance in breaking down the 1,900 zone.

Amidst signs of easing inflationary pressures, the release of more hawkish FOMC minutes and upbeat US labor market and consumer sentiment data suggests that interest rates could stay higher for longer, limiting the potential of Gold. Further amplifying this scenario, is a noteworthy uptick in US Treasury bond yields.
Nevertheless, a prevailing weaker tone surrounding equity markets is lending support to safe-haven assets, including Gold. The division between hawkish Fed sentiments and global economic uncertainties continues to shape the dynamics of this market.

From a technical perspective, in the last 24 hours price action is currently confined within the range of 1,900 and 1,996, hovering just above a robust demand zone with a significant memory for buying power. In this regard, it is important to protect all existing sell positions while awaiting clear signals in the form of a breakout or breakdown of the range.

Good Morning

Trade active

#XAUUSD

UPDATE

Two buy positions triggered at the breakout of both the 1,996 and 2,000 with a total of 100 pips in profit; protect all position as we look out of new trading opportunities.

Note

I am excited to share with you my new idea on the XAUUSD ahead of the following week as Gold maintains its position around $2,000, buoyed by a weakening US Dollar and mixed US PMI data:

darcsherry

Trade smart. Trade consciously

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XAUUSD | GOLDSPOT | New perspective | follow-up details

by darcsherry

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