Macro approach:
- Gold prices have recently pulled back as investors took profits at elevated levels to offset losses elsewhere amid rising geopolitical tensions in the Middle East and steady Fed holding rates.
- Speculation is mounting that the US may involve into the Middle East conflicts, raising fears of a broader regional tensions.
- Meanwhile, a dovish Fed outlook signaling two potential rate cuts this year and concerns over growing US debt continues to provide underlying support for gold prices.
Technical approach:
- XAUUSD is retesting EMA21, and the support level is around 3560. The price is above both EMAs, indicating that the upward momentum is intact.
- If XAUUSD closes below EMA21, it may continue to plunge and retest the following support at 3285, which is the confluence with the ascending trendline.
- On the contrary, remaining above 3560 may prompt a potential retest of the key resistance at around 3430.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- Gold prices have recently pulled back as investors took profits at elevated levels to offset losses elsewhere amid rising geopolitical tensions in the Middle East and steady Fed holding rates.
- Speculation is mounting that the US may involve into the Middle East conflicts, raising fears of a broader regional tensions.
- Meanwhile, a dovish Fed outlook signaling two potential rate cuts this year and concerns over growing US debt continues to provide underlying support for gold prices.
Technical approach:
- XAUUSD is retesting EMA21, and the support level is around 3560. The price is above both EMAs, indicating that the upward momentum is intact.
- If XAUUSD closes below EMA21, it may continue to plunge and retest the following support at 3285, which is the confluence with the ascending trendline.
- On the contrary, remaining above 3560 may prompt a potential retest of the key resistance at around 3430.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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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.