Technical and Fundamental Analysis: A Long-Term Outlook on Gold and the U.S. Dollar
1. Technical Analysis:
Gold (XAU/USD):
Current Price: Gold is currently trading around the 3,219.39 level, marking a significant high compared to recent price levels. This is seen as a major resistance point that could limit the price in the short term.
Key Support and Resistance Levels:
Resistance: 3,164.62, 3,190.48, 3,219.39
Support: 3,118.98, 3,069.60
Moving Averages (MA):
MA 13 (Short-Term) and MA 34 (Medium-Term) both lie below the current price, indicating a bullish trend in the short to medium term.
MA 200 (Long-Term) shows that the long-term trend for gold remains strong and stable, with the price currently trading above all these moving averages.
Current Situation: Gold is on a strong upward trajectory, supported by economic factors such as the Federal Reserve's interest rate policies and overall monetary policies. The current price suggests that gold could continue to rise in the short term, particularly if the U.S. Dollar remains weak.
Long-Term Outlook: If the resistance level of 3,219.39 is breached, gold could potentially move towards the 3,250 level and beyond. However, caution should be exercised as profit-taking may occur towards the end of the week. Avoid FOMO and buying at the peak.
2. Fundamental Analysis:
U.S. Dollar (DXY Index):
The DXY Index is currently in a strong downward trend, trading below 100.554. It may continue to fall towards 99.783 in the upcoming months.
Key Support Levels for USD: 99.783 and 97.500. If the DXY continues to drop and breaks these levels, it would put additional pressure on the USD and be supportive for gold.
Impact of Monetary Policies:
The Federal Reserve has indicated a potential interest rate cut in the future, which would continue to pressure the U.S. Dollar and support gold, especially amid global economic concerns.
Economic Situation in the U.S.: With some economic indicators such as CPI and PPI showing weakness, the U.S. economy is facing challenges. This adds further pressure to the U.S. Dollar and provides an advantage to gold.
3. Long-Term Perspective:
Gold is currently in a strong bullish trend, supported by both technical and fundamental factors. In the short term, gold may continue to rise as long as the U.S. Dollar remains weak. However, caution should be exercised toward the end of the week due to potential profit-taking.
For Gold (XAU/USD): If gold breaks key resistance levels, it could continue to rise in the long term, especially if the U.S. Dollar remains weak. However, caution should be taken at the peaks.
As for the U.S. Dollar: The DXY is expected to continue its decline in the short term, which would further support gold. However, if the DXY starts to recover, gold might face some pressure.
Trading Strategy:
Preferred Buy Zones for gold: 3,118.98 and 3,069.60. But be cautious as profit-taking could occur toward the end of the week.
Avoid selling gold unless the major resistance levels are broken and clear signals emerge from the market.
Conclusion:
With gold continuing its upward trend, supported by favorable monetary policies and economic expectations, gold remains a strong opportunity for both short and long-term investors. However, investors should be cautious about profit-taking towards the weekend. Monitoring future performance of the U.S. Dollar and any changes in Federal Reserve monetary policy will be crucial.
1. Technical Analysis:
Gold (XAU/USD):
Current Price: Gold is currently trading around the 3,219.39 level, marking a significant high compared to recent price levels. This is seen as a major resistance point that could limit the price in the short term.
Key Support and Resistance Levels:
Resistance: 3,164.62, 3,190.48, 3,219.39
Support: 3,118.98, 3,069.60
Moving Averages (MA):
MA 13 (Short-Term) and MA 34 (Medium-Term) both lie below the current price, indicating a bullish trend in the short to medium term.
MA 200 (Long-Term) shows that the long-term trend for gold remains strong and stable, with the price currently trading above all these moving averages.
Current Situation: Gold is on a strong upward trajectory, supported by economic factors such as the Federal Reserve's interest rate policies and overall monetary policies. The current price suggests that gold could continue to rise in the short term, particularly if the U.S. Dollar remains weak.
Long-Term Outlook: If the resistance level of 3,219.39 is breached, gold could potentially move towards the 3,250 level and beyond. However, caution should be exercised as profit-taking may occur towards the end of the week. Avoid FOMO and buying at the peak.
2. Fundamental Analysis:
U.S. Dollar (DXY Index):
The DXY Index is currently in a strong downward trend, trading below 100.554. It may continue to fall towards 99.783 in the upcoming months.
Key Support Levels for USD: 99.783 and 97.500. If the DXY continues to drop and breaks these levels, it would put additional pressure on the USD and be supportive for gold.
Impact of Monetary Policies:
The Federal Reserve has indicated a potential interest rate cut in the future, which would continue to pressure the U.S. Dollar and support gold, especially amid global economic concerns.
Economic Situation in the U.S.: With some economic indicators such as CPI and PPI showing weakness, the U.S. economy is facing challenges. This adds further pressure to the U.S. Dollar and provides an advantage to gold.
3. Long-Term Perspective:
Gold is currently in a strong bullish trend, supported by both technical and fundamental factors. In the short term, gold may continue to rise as long as the U.S. Dollar remains weak. However, caution should be exercised toward the end of the week due to potential profit-taking.
For Gold (XAU/USD): If gold breaks key resistance levels, it could continue to rise in the long term, especially if the U.S. Dollar remains weak. However, caution should be taken at the peaks.
As for the U.S. Dollar: The DXY is expected to continue its decline in the short term, which would further support gold. However, if the DXY starts to recover, gold might face some pressure.
Trading Strategy:
Preferred Buy Zones for gold: 3,118.98 and 3,069.60. But be cautious as profit-taking could occur toward the end of the week.
Avoid selling gold unless the major resistance levels are broken and clear signals emerge from the market.
Conclusion:
With gold continuing its upward trend, supported by favorable monetary policies and economic expectations, gold remains a strong opportunity for both short and long-term investors. However, investors should be cautious about profit-taking towards the weekend. Monitoring future performance of the U.S. Dollar and any changes in Federal Reserve monetary policy will be crucial.
⚜️ Trade with Money Market Flow, logic, Price action 📉📈
⚜️Risk Reward 1.3 to 2.5...
⚜️Daily 7 to 15 Signals Vip
⚜️Risk Reward 1.3 to 2.5...
⚜️Daily 7 to 15 Signals Vip
Related publications
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.
⚜️ Trade with Money Market Flow, logic, Price action 📉📈
⚜️Risk Reward 1.3 to 2.5...
⚜️Daily 7 to 15 Signals Vip
⚜️Risk Reward 1.3 to 2.5...
⚜️Daily 7 to 15 Signals Vip
Related publications
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.