XAU/USD | GOLDSPOT | New perspective | follow-up details
Updated
Gold prices resumed it's upward momentum on Friday, closing the week with gains amid a decrease in US Treasury bond yields. The 10-year benchmark note saw a decline of three and a half basis points, settling at 4.248%. Despite recent comments from Federal Reserve officials suggesting a somewhat hawkish stance, investors responded positively by reducing expectations for Fed interest rate cuts.
The release of the Federal Open Market Committee (FOMC) minutes for January revealed a cautious approach among policymakers regarding rate cuts, particularly in light of recent inflationary pressures. While recognizing a more balanced outlook for achieving both mandates, policymakers emphasized their continued vigilance towards inflation, with economic risks perceived as tilted to the downside. The Fed aims to maintain interest rates in the range of 5.25% to 5.50% for the time being, seeking to assess whether January's inflation data reflects a temporary spike or a sustained trend.
This reluctance to immediately implement rate cuts is seen as a measure to mitigate potential upward pressures on consumer prices. In light of this, the cost of holding assets like Gold, which do not provide yields is likely going to go up. The future movement of safe-haven assets will be influenced by market expectations regarding potential Fed rate cuts.
This video sheds light on the technical understanding of the market structure in other to unravel the potential trajectory of price action in the upcoming week.
XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviors, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,025 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, a breach below the $2,025 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
#GoldMarket #SafeHavenAssets 📺🔔💼
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.
The release of the Federal Open Market Committee (FOMC) minutes for January revealed a cautious approach among policymakers regarding rate cuts, particularly in light of recent inflationary pressures. While recognizing a more balanced outlook for achieving both mandates, policymakers emphasized their continued vigilance towards inflation, with economic risks perceived as tilted to the downside. The Fed aims to maintain interest rates in the range of 5.25% to 5.50% for the time being, seeking to assess whether January's inflation data reflects a temporary spike or a sustained trend.
This reluctance to immediately implement rate cuts is seen as a measure to mitigate potential upward pressures on consumer prices. In light of this, the cost of holding assets like Gold, which do not provide yields is likely going to go up. The future movement of safe-haven assets will be influenced by market expectations regarding potential Fed rate cuts.
This video sheds light on the technical understanding of the market structure in other to unravel the potential trajectory of price action in the upcoming week.
XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviors, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,025 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, a breach below the $2,025 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
#GoldMarket #SafeHavenAssets 📺🔔💼
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 kicks off, Gold prices witnessed downward pressure but have since begun sideways trading, moving within a certain range, amidst ongoing geopolitical tensions and a recent dip in the US Dollar. The risks of increased military actions in the Middle East and the ongoing Russia-Ukraine conflict may continue to support safe-haven assets such as Gold. Additionally, uncertainties about the Federal Reserve's interest rate decisions could push Gold prices up ahead of important US economic data releases scheduled for Wednesday and Thursday. These data releases might provide clearer direction for Gold prices. For now, we'll be using the newly identified levels on the 1-hour timeframe as our guide while we keep our options open.Good Morning
Trade closed: stop reached
#XAUUSDStop-loss hit on the buy position as price action breaks down 2,030 level to trigger a sell position.
Trade closed manually
The week has commenced on a challenging note for us, as both our buy and sell positions from yesterday failed to meet our expectations. Currently, Gold prices appear to be making another attempt to reach previous highs amidst a persistently weakened US Dollar, influenced by declining US Treasury bond yields and anticipation surrounding forthcoming US economic data.During the Asian session, Gold garnered interest from buyers following yesterday's pullback, maintaining stability above the 2,030 zone after breaching the descending trendline. Notably, the release of last week's FOMC meeting minutes indicated a lack of urgency among policymakers to decrease interest rates. This development is anticipated to bolster US bond yields, thereby favoring USD strength and potentially restraining significant upward movements in Gold prices.
Consequently, we may encounter a period of consolidation, with market participants exercising caution before committing to aggressive positions ahead of the US macroeconomic data. Meanwhile, the key levels identified on the chart will serve as our guiding light for today's trading activity.
Good Morning.
Trade active
#XAUUSDUPDATE
Trade closed manually
The buy position is taken out at break even as selling pressure resumes. A breakdown/retest of the ascending trendline and the $2,033.50 Level will welcome selling opportunities while we keep the option of buying open with the $2,040 level.Trade active
Currently, we have sell position activated amidst the US Dollar's ongoing recovery as the US Treasury bond yields shows signs of slight recovery while market sentiment turns cautious ahead of the impending US GDP data release. Meanwhile, Gold prices (XAU/USD) continue to hover within a narrow consolidation range between 2,033.50 and 2,030, awaiting fresh catalysts to dictate the next directional movement.The recent resurgence in USD buying, fueled by optimistic Federal Reserve (Fed) expectations, poses a significant obstacle for Gold prices. Additionally, the prevailing risk-on sentiment in the market further suppresses Gold's value. However, a potential decrease in US Treasury bond yields could hinder aggressive USD bullishness and offer some support to XAU/USD.
Market participants at this juncture are eagerly awaiting the preliminary US Q4 GDP figures set to be released later today, along with speeches from FOMC members. These events are anticipated to inject momentum into both the US Dollar and Gold prices. In this regard, it is appropriate that we safeguard the active position while monitoring price action for new trading opportunities.
Good Morning
Trade active
Buy position triggered at the break out of the descending trendline/$2,030 level; protect position now as the US GDP draws near. Please note that all levels remain valid.Trade active
Three active buy positions are currently yielding a total profit of 140 pips as the Gold price sustains its upward momentum for the second consecutive day, trading within the green zone. However, given the current positioning of the price in the supply zone, it is prudent to safeguard all buy positions as a sense of caution may pervade the market ahead of the impending release of key US inflation data.Despite the bullish sentiment, the upside potential for Gold remains constrained amidst growing consensus that the Federal Reserve (Fed) will prolong higher interest rates. This sentiment may prompt market participants to adopt a more tentative approach, delaying aggressive directional bets until further clarity emerges regarding the Fed's monetary policy trajectory.
Consequently, the spotlight will be firmly fixed on the US Personal Consumption Expenditures (PCE) Price Index, which is expected to exert a significant influence on USD dynamics and consequently shape the short-term trajectory for Gold. Meanwhile, the prevailing hawkish expectations surrounding the Fed underscore the importance of exercising caution before committing to further extensions of the recent recovery.
In light of these developments, it is important to safeguard all positions, with the levels identified on the chart serving as our guiding light for navigating today's trading activity.
Good Morning
Trade active
#XAUUSDUPDATE
Two sell positions triggered at the breakdown of the ascending trendline identified during our live session this morning; protect all positions as we look out for new trading opportunities.
Trade active
UPDATEThree sell positions triggered; protect positions
Trade active
#XAUUSDUPDATE
Core PCE data comes in just as expected to incite positive traction in favour of Gold and trigger buy-stop orders at the $2,035 and $2,040 levels. Protect positions as we look out for new trading opportunities.
Trade active
The gold price is currently consolidating near a four-week high, hovering between the 2,050 and 2,043 zone. This consolidation phase suggests a potential buildup of momentum for a further upward push. The weakening of the US Dollar, coupled with a decline in US Treasury bond yields, offers renewed optimism for gold buyers, especially with the anticipation of the upcoming ISM Manufacturing PMI data, a significant economic indicator.Yesterday's release of the US Core PCE hinted at a moderation in inflationary pressures, reinforcing market expectations of potential rate cuts by the Federal Reserve later in the year. Such a prospect tends to bolster safe-haven assets like gold. However, it's crucial to consider the lingering hawkish sentiment, which supports elevated US Treasury bond yields and could eventually bolster the US Dollar. This dynamic might cap the gains for gold, particularly as the week progresses amidst a prevailing risk-on sentiment.
Given this backdrop, it's prudent to safeguard all buy positions while remaining vigilant for fresh trading opportunities. Additionally, it's essential to keep the possibility of selling positions open, aligning with the chart's identified structural patterns. By adopting this approach, we aim to navigate the current market conditions effectively as the week come to a close.
Happy new month!
Trade active
#XAUUSDUPDATE
New buy position triggered at the break of $2,050 after sell position was taken out at break even; protect position now
Trade smart. Trade consciously
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