Gold - XAUUSD is still neutral but well after the FED
Updated
Despite the highest rate hike by the FED since 1994, gold is holding up pretty well so far. It exhibits neutrality at the moment. However, despite that, we remain bullish on it with price targets at 2100 UDS and 2300 USD.
Illustration 1.01
The picture shows how BTC started to lose its market dominance.
The Celsius Network, run by Alex Mashinsky, paused withdrawals, swaps, and transfers on its platform a few days ago. Unfortunately, that is a substantial blow to over 1.7 million platform users, leaving their 151 534 BTC locked away. The company's statement says:
“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.”
We view this as a very positive development for gold as this recent event shook the confidence of cryptocurrency investors and hinted at the risks associated with investing in cryptocurrency institutions, projects, etc. We expect more capital inflows into gold from the cryptocurrency sector as it will continue to plunge lower.
Technical analysis - daily time frame
RSI is neutral. MACD and Stochastic are bearish. DM+ and DM- produce whipsaws, hinting at the neutral trend. Overall, the daily time frame is neutral.
Illustration 1.02
The total cryptocurrency market cap plunged below 1trn. USD.
Technical analysis - weekly time frame
MACD and Stochastic are bearish. RSI is neutral. DM+ and DM- are bearish. However, ADX suggests the presence of a neutral trend. Overall, the daily time frame is neutral.
Illustration 1.03
The picture shows a bearish breakout below the sloping support/resistance. Ideally, we would like the price to retrace above the sloping support/resistance.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Illustration 1.01
The picture shows how BTC started to lose its market dominance.
The Celsius Network, run by Alex Mashinsky, paused withdrawals, swaps, and transfers on its platform a few days ago. Unfortunately, that is a substantial blow to over 1.7 million platform users, leaving their 151 534 BTC locked away. The company's statement says:
“Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, Swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.”
We view this as a very positive development for gold as this recent event shook the confidence of cryptocurrency investors and hinted at the risks associated with investing in cryptocurrency institutions, projects, etc. We expect more capital inflows into gold from the cryptocurrency sector as it will continue to plunge lower.
Technical analysis - daily time frame
RSI is neutral. MACD and Stochastic are bearish. DM+ and DM- produce whipsaws, hinting at the neutral trend. Overall, the daily time frame is neutral.
Illustration 1.02
The total cryptocurrency market cap plunged below 1trn. USD.
Technical analysis - weekly time frame
MACD and Stochastic are bearish. RSI is neutral. DM+ and DM- are bearish. However, ADX suggests the presence of a neutral trend. Overall, the daily time frame is neutral.
Illustration 1.03
The picture shows a bearish breakout below the sloping support/resistance. Ideally, we would like the price to retrace above the sloping support/resistance.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade closed: stop reached
XAUUSD dropped below the low from 16th May 2022, which likely suggests more downside for gold. We remain bullish in the long term, although we are growing increasingly bearish in the short term. In our opinion, gold will likely drop to 1700 USD. Especially if the general stock market continues to manifest weakness. Due to that, we abandon our price targets for XAUUSD.
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