Gold Surges After U.S. Inflation Data | New perspective
Updated
In this week’s analysis, we dive into Gold's 1% surge following U.S. inflation data, which has sparked fresh uncertainty over inflation trends and boosted demand for safe-haven assets. The Consumer Price Index rose by 0.2% last month, while bullish PPI figures suggest the Fed could be on track for interest rate cuts in 2024.
With escalating geopolitical tensions, could Gold rally beyond $3,000 before year-end?
XAUUSD Technical Overview:
This week, we’re zeroing in on the critical $2,660 zone. If Gold stays above this level, bulls may maintain control, potentially pushing prices to new highs. However, if Gold dips below, bears could force a pullback toward the descending channel’s support line.
📌 Stay tuned as we navigate the next big moves in the Gold market!
#GoldMarket #XAUUSD #InflationData #FederalReserve #SafeHavenAssets #Geopolitics #MarketAnalysis📺🔔💼
Disclaimer Notice:
Trading in the foreign exchange market and other instruments carries a high risk and may not be suitable for all investors. The content provided here is for educational purposes only. Evaluate your financial situation and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.
With escalating geopolitical tensions, could Gold rally beyond $3,000 before year-end?
XAUUSD Technical Overview:
This week, we’re zeroing in on the critical $2,660 zone. If Gold stays above this level, bulls may maintain control, potentially pushing prices to new highs. However, if Gold dips below, bears could force a pullback toward the descending channel’s support line.
📌 Stay tuned as we navigate the next big moves in the Gold market!
#GoldMarket #XAUUSD #InflationData #FederalReserve #SafeHavenAssets #Geopolitics #MarketAnalysis📺🔔💼
Disclaimer Notice:
Trading in the foreign exchange market and other instruments carries a high risk and may not be suitable for all investors. The content provided here is for educational purposes only. Evaluate your financial situation and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.
Note
Gold found support during the Asian session today, as hopes for additional Federal Reserve rate cuts fueled dip-buying. Recent US Producer Price Index (PPI) data indicates a favourable inflation outlook, strengthening the case for further rate cuts. Heightened geopolitical tensions in the Middle East also contributed to gold's safe-haven appeal.
However, with investors ruling out an oversized Fed rate cut in November, US Treasury yields remain elevated, keeping the US Dollar near its recent highs and limiting gold’s upside. Additionally, China's economic stimulus measures add a layer of caution for bulls in the XAU/USD market. See you during our upcoming live session!
Good Morning
Note
Gold prices edged lower due to reduced expectations for larger Fed rate cuts, coupled with a stronger US Dollar, leading to our first loss this week. The firming belief in a less aggressive policy from the Federal Reserve, with markets now anticipating a modest 25 basis points cut, has fueled the recent USD rally. This, along with the prevailing risk-on sentiment, has weighed on demand for gold.
However, with ongoing geopolitical tensions in the Middle East, downside risk remains capped, so we should remain cautious before committing to any aggressive bearish positions.
Notably, we've identified a new technical setup on the 15-minute chart, which saw a resurgence of buying pressure earlier today. This will serve as our roadmap for today's trades, with key levels marked on the chart for reference.
Good Morning
Trade closed manually
#XAUUSD
Buy position closed with moderate profit as sell pressure resumes. We shall watch price action around the $2,642 and $2,648 [descending trendline] for new trading opportunities.
Trade active
#XAUUSD
With over 120 pips in profit; it is time to secure some profit.
Trade active
#XAUUSD
Structural update as discussed during our live session this morning
Trade active
We are currently up over 120 pips in profit as Gold consolidates its gain during the Asian session. The recent bullish movement is supported by expectations of interest rate cuts from major central banks and heightened geopolitical risks in the Middle East, which continue to drive demand for the commodity.
However, further upside appears to be limited by the strength of the US Dollar, as traders factor in potential modest rate cuts from the Fed and an overall positive risk sentiment. As we head into today's session, all eyes are on the upcoming US Retail Sales data, which could offer short-term trading opportunities.
I’ll be sharing a fresh technical setup soon—stay tuned and lock in your profits.
Good Morning
Trade smart. Trade consciously
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