Gold 19/09 - A mindset of caution.
Updated
⚡️Market news
In the context of high oil prices putting pressure on current inflation, full inflation rose to 0.6% in August, so this factor could exert significant pressure on the Fed's policy decisions. It is very possible that the tightening process will not stop at this point and the Fed will continue to maintain a watchful stance and leave open the possibility of an increase in November.
In a situation where US demand shows only some signs of weakness despite interest rates rising by over 5 percentage points, conventional wisdom suggests that both the public and experts would expect more action from the Federal Reserve (Fed).
However, Fed officials are also concerned about a new aspect: considering how policy impacts supply-side factors in the economy.
There is a possibility that excessive interest rate hikes could weaken the fight against inflation. The economic supply has only recently increased, and excessively high interest rates can eliminate benefits from supply-side factors.
The foundation of macroeconomic theory suggests that monetary policy primarily affects demand. As interest rates rise and borrowing costs become more expensive, it hampers demand, thereby reducing inflation.
⚡️Optimus's point of view
The chart shows that the simultaneous increase in USD is causing the price of Gold to cool down and may reverse to decrease today until the end of the week.
XAUUSD chart closed yesterday at a three-week high. That proves that gold's resilience is expanding.
Many sources show that the strength of the dollar is being restored. In the immediate future, it is under pressure from Building Permits news and CAD's CPI news tonight.
⚡️Plan trading
BUY GOLD: 1925-1927
SL 1920
TP 1935
SELL GOLD: 1940-1922
SL 1945
TP 1930
⚡️Note
Full SL settings for trading signals
Divide the trading volume to enter around the price range
If you feel the profit is enough, you can close 1/2 and move Sl to entry
In the context of high oil prices putting pressure on current inflation, full inflation rose to 0.6% in August, so this factor could exert significant pressure on the Fed's policy decisions. It is very possible that the tightening process will not stop at this point and the Fed will continue to maintain a watchful stance and leave open the possibility of an increase in November.
In a situation where US demand shows only some signs of weakness despite interest rates rising by over 5 percentage points, conventional wisdom suggests that both the public and experts would expect more action from the Federal Reserve (Fed).
However, Fed officials are also concerned about a new aspect: considering how policy impacts supply-side factors in the economy.
There is a possibility that excessive interest rate hikes could weaken the fight against inflation. The economic supply has only recently increased, and excessively high interest rates can eliminate benefits from supply-side factors.
The foundation of macroeconomic theory suggests that monetary policy primarily affects demand. As interest rates rise and borrowing costs become more expensive, it hampers demand, thereby reducing inflation.
⚡️Optimus's point of view
The chart shows that the simultaneous increase in USD is causing the price of Gold to cool down and may reverse to decrease today until the end of the week.
XAUUSD chart closed yesterday at a three-week high. That proves that gold's resilience is expanding.
Many sources show that the strength of the dollar is being restored. In the immediate future, it is under pressure from Building Permits news and CAD's CPI news tonight.
⚡️Plan trading
BUY GOLD: 1925-1927
SL 1920
TP 1935
SELL GOLD: 1940-1922
SL 1945
TP 1930
⚡️Note
Full SL settings for trading signals
Divide the trading volume to enter around the price range
If you feel the profit is enough, you can close 1/2 and move Sl to entry
Note
The American session is coming and gold will probably match our entry pointNote
The gold SELL strategy had a wrong entry. OP would like permission to revise SELL GOLD 1940-1942Note
Gold is going sideways and the current trend is still not specific.Note
Gold went sideways today. Waiting for a good signal, Op will send it to you.Trade closed: target reached
True to my analysis, gold has found the price range of 194x and those who follow my strategy BUY gold + 170 pips. That's so great. Please follow the latest strategy so you don't miss many good signals. If you haven't yet, please like and follow me now.
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