XAUUSD | GOLDSPOT | New perspective | follow-up details

Updated

In this video, we delve into the recent surge in gold prices, driven by a combination of factors. On Friday, the U.S. dollar and Treasury yields experienced a decline following disappointing U.S. jobs data, solidifying expectations that the Federal Reserve will halt its interest rate hikes. The October job growth figures fell short of economists' projections, with only 150,000 jobs added compared to the anticipated 180,000. Additionally, wage inflation cooled, indicating a potential easing in labor market conditions.

It is crucial to note that if the labor market continues to deteriorate, the Federal Reserve will be unable to maintain its hawkish stance. This data reinforces the notion of a Fed pause, which has contributed to the rise in gold prices. Furthermore, the dollar index (.DXY) experienced a 1% drop, while the benchmark 10-year U.S. Treasury yields reached a low not seen in over a month, further bolstering gold's appeal.

In light of the ongoing Middle East conflict, investors are now pricing in a 95% chance that the U.S. central bank will keep interest rates unchanged in December, compared to the previous 80% prior to the release of this data. These insights are based on the CME FedWatch tool.

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 $2,010 zone will remain 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 will serve as a platform for new highs. However, if selling pressure persists below $2,010 just as it had done in the last 5 months, 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 📺🔔💼

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

As the new week begins, trading activities have started on a slightly weaker note, following the retracement observed on Friday. The price action has now broken down the ascending trendline that was highlighted in the video. This breakdown could be linked to a modest increase in the US Treasury bond, which has influenced market sentiment.

Nevertheless, it is crucial to approach this situation with patience. It is necessary to validate this breakdown, as market participants are currently exercising caution before making any significant adjustments or placing aggressive bets on the market. It is important to wait for further confirmation of a meaningful corrective decline before making any decisive moves.

Good Morning

Trade closed manually

Selling pressure persists as the modest recovery seen in the 10-year US Treasury bond yield appears to be affecting the uptrend. The breakdown/retest of the $1,982 level will be welcoming selling opportunities

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We're observing signs of further weakness in Gold as trading activities resumed the downtrend, pushing prices down to the 1,971 zone this morning. This decline might be seen as a corrective phase, considering the current dip in US Treasury bond yields. These lower yields are a result of growing expectations that the Federal Reserve is approaching the conclusion of its policy tightening cycle, which could potentially limit the extent of loss in the Gold commodity [so I think!].

After being stopped out from the buy position in a loss yesterday, we had a bearish signal at the breakdown/retest of the 1,982 level, triggering a sell position. It is advisable to protect the current sell positions and exercise a patient approach, closely monitoring how the market reacts around the 1,971 zone for potential cues.

Good Morning

Trade active

#XAUUSD

UPDATE

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Three sell positions triggered with over 280 pips in profit; protect positions

Trade active

#XAUUSD

UPDATE

Protect positions as we look out for new trading opportunities.

Trade closed manually

All sell positions have been closed with a minimum profit of 250 pips as buying pressure has resumed, breaking the descending trendline that has been supporting bearish momentum since the beginning of the week.

The price of gold is currently consolidating the losses incurred earlier this week, as the US Dollar seeks a clear direction amidst conflicting Federal Reserve commentaries, a cautious risk tone, and the recent drop in US Treasury bond yields.

As a result, the focus will remain on Fed Chair Jerome Powell’s speech scheduled for later today, as it is expected to play a key role in influencing prices and determining the near-term trajectory of this asset. The levels indicated on the chart will continue to guide today's trading opportunities.

Good Morning

Note

UPDATE

Trade active

Having gained 200 pips from two sell positions, the Gold price continues to hover near a multi-week trough, as seen in yesterday's trading session.
The ongoing decline in US bond yields is putting pressure on the USD, seemingly providing some "support" to XAUUSD, with buying pressure noted around 1,947.50 during the Asian session. In this regard and given the anticipation surrounding the Fed Chair's speech today, it's crucial to protect the sell positions to prevent any potential sudden rebound affecting the current position.

Good Morning

Trade active

UPDATE

Trade closed manually

ll sell positions have been closed as buying pressure resumes. Investors are eagerly awaiting Federal Reserve Chairman Jerome Powell’s guidance on the upcoming December monetary policy meeting and the outlook on the economy later today. The failure of prices to breach the 1,947/1,945 zone could mark the start of a potential reversal setup, consistent with our discussion during this morning's live session. A breakout/retest of both the descending trendline and the 1,953 zone is likely to present favorable buying opportunities. It's important to note that the potential for selling below the 1,945.50 level still remains intact.

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UPDATE

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UPDATE

Three positions triggered with over 150 pips profit; protect positions

Trade active

The price of gold is currently struggling to maintain the bullish momentum it started during yesterday's trading session, which saw it surge from the $1,944 zone. The outcome of the Asian session reveals that price action is consolidating.

Despite this, the bullish outlook remains intact, as the price action is still above the descending trendline. However, it is important to note that the upward trend may be limited depending on how market participants react to the hawkish comments made by the Federal Reserve Chair, Jerome Powell, yesterday. Powell reiterated the need for higher interest rates to combat high inflation, which has led to the rise in the yield on the benchmark 10-year US government bond. This, in turn, may act as a headwind for gold prices.

Later today, the release of the Michigan US Consumer Sentiment Index may influence the dynamics of market conditions, potentially creating short-term trading opportunities ahead of the weekend. In the meantime, those who still hold buy positions should protect them while we continue to monitor the price action.

Happy Friday!

Trade active

Just as discussed during our live session this morning; secure sell positions

Trade active

Ensure you protect the sell positions as the $1944 zone could incite bullish potentials due to it's memory for buying power.

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#XAUUSD

Another sell position triggered at the breakdown/retest of the $1,944.50 level. Protect all positions and have a wonderful weekend everyone!

Note

I am excited to share with you my new idea [technical vperspective] on the XAUUSD ahead of the following week as we are facing a divided opinion among investors, with some anticipating higher rates for an extended period, potentially leading to increased price volatility.
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Note

I am excited to share with you my new idea on the XAUUSD ahead of the following week as we look to capitalize on the next move in light of recent US macro data, signaling a pause in the Federal Reserve's interest rate hikes.

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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