Gold long-term possibility
The recent downtrend in gold prices can be attributed to several geopolitical and economic factors:
Federal Reserve's Monetary Policy: There is increasing optimism that the Federal Reserve may reduce interest rates before the upcoming U.S. elections, as part of a strategy to support economic growth. This sentiment has been bolstered by recent indications of a slowing U.S. economic recovery, which could reduce inflation pressures and prompt the Fed to ease monetary policy sooner than previously expected .
Geopolitical Tensions: Rising geopolitical risks, particularly in the Middle East, have also impacted gold prices. Recent incidents, such as the death of Iran's President Ebrahim Raisi and the attack on a China-bound oil tanker, have heightened market uncertainty and led to increased demand for gold as a safe-haven asset.
Profit-Taking: Following a significant rally that saw gold prices reach new highs, there has been some profit-taking, which has contributed to the recent pullback in prices. Despite this, the overall outlook for gold remains positive, with analysts predicting potential new highs in the near future due to sustained central bank purchases and robust demand from key markets like China .
Next week possibility
Based on the current market conditions and recent trends, it seems likely that gold prices will remain volatile. If the Federal Reserve signals a more dovish stance, we might see a rebound in gold prices. Conversely, if geopolitical tensions escalate further, this could also support higher gold prices due to increased safe-haven demand.
For long-term
Sell (Short): Given the bearish trend and the projection, selling (shorting) might be the preferable option, especially if the price tests and fails to break above the immediate resistance at 2,420.00.
Buy (Long): Consider buying only if there is a strong reversal signal near the support zones around 2,340.00 or 2,310.00, coupled with bullish confirmation such as a break above the recent highs or resistance levels.
For Short term
Buy (Long): Consider buying only if there is a strong reversal signal near the support zones around 2390.00 or next support around 2413.00, coupled with bullish confirmation such as a break above the recent highs or resistance levels.
Federal Reserve's Monetary Policy: There is increasing optimism that the Federal Reserve may reduce interest rates before the upcoming U.S. elections, as part of a strategy to support economic growth. This sentiment has been bolstered by recent indications of a slowing U.S. economic recovery, which could reduce inflation pressures and prompt the Fed to ease monetary policy sooner than previously expected .
Geopolitical Tensions: Rising geopolitical risks, particularly in the Middle East, have also impacted gold prices. Recent incidents, such as the death of Iran's President Ebrahim Raisi and the attack on a China-bound oil tanker, have heightened market uncertainty and led to increased demand for gold as a safe-haven asset.
Profit-Taking: Following a significant rally that saw gold prices reach new highs, there has been some profit-taking, which has contributed to the recent pullback in prices. Despite this, the overall outlook for gold remains positive, with analysts predicting potential new highs in the near future due to sustained central bank purchases and robust demand from key markets like China .
Next week possibility
Based on the current market conditions and recent trends, it seems likely that gold prices will remain volatile. If the Federal Reserve signals a more dovish stance, we might see a rebound in gold prices. Conversely, if geopolitical tensions escalate further, this could also support higher gold prices due to increased safe-haven demand.
For long-term
Sell (Short): Given the bearish trend and the projection, selling (shorting) might be the preferable option, especially if the price tests and fails to break above the immediate resistance at 2,420.00.
Buy (Long): Consider buying only if there is a strong reversal signal near the support zones around 2,340.00 or 2,310.00, coupled with bullish confirmation such as a break above the recent highs or resistance levels.
For Short term
Buy (Long): Consider buying only if there is a strong reversal signal near the support zones around 2390.00 or next support around 2413.00, coupled with bullish confirmation such as a break above the recent highs or resistance levels.
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.