GOLD rising, confluent resistance is about to appear
Updated
Gold rose for the fourth straight session on Tuesday (+0.50% to $2,027), holding above the $2,025 mark, supported by falling US Treasury yields and a weaker US dollar. The same risk aversion on Wall Street is likely to support the metal's rally.
Considering the recent gains, XAU/USD is up over 2% from last week's low near $1,985 after higher-than-expected US inflation figures. Despite the positive performance, the direction of the Federal Reserve's monetary policy may limit gold price increases in the near term, so caution is warranted.
At the beginning of 2024, the prospects for gold bullion look brighter with the assumption that the Fed will take aggressive easing steps this year. However, overly dovish expectations have subsided due to strong US labor market data and stagnant deflation progress.
Traders may continue to reduce dovish speculation on the FOMC if incoming information continues to reflect economic strength and strong price pressures. This is because these two factors could encourage policymakers to delay the start of the easing cycle and reduce the magnitude of further rate cuts.
There are no major events on the US economic calendar in the coming days, but next week January PCE figures will be released. This report is poised to explain the latest inflation dynamics and provide insight into the Fed's next steps, so traders should keep an eye on it.
Considering the recent gains, XAU/USD is up over 2% from last week's low near $1,985 after higher-than-expected US inflation figures. Despite the positive performance, the direction of the Federal Reserve's monetary policy may limit gold price increases in the near term, so caution is warranted.
At the beginning of 2024, the prospects for gold bullion look brighter with the assumption that the Fed will take aggressive easing steps this year. However, overly dovish expectations have subsided due to strong US labor market data and stagnant deflation progress.
Traders may continue to reduce dovish speculation on the FOMC if incoming information continues to reflect economic strength and strong price pressures. This is because these two factors could encourage policymakers to delay the start of the easing cycle and reduce the magnitude of further rate cuts.
There are no major events on the US economic calendar in the coming days, but next week January PCE figures will be released. This report is poised to explain the latest inflation dynamics and provide insight into the Fed's next steps, so traders should keep an eye on it.
Note
SELL GOLD 2027 - 2025↠ Stoploss 2030
→ Take Profit 1 2020
→ Take Profit 2 2010
Trade active
+ 50pips, close a part move SL to entry.🔥Note
🔴More Federal Reserve officials at their meeting last month signaled concern with cutting interest rates too soon and allowing price pressures to grow entrenched.Note
SELL XAUUSD PRICE 2041 - 2039⚡️ ↠↠ Stoploss 2045
→Take Profit 1 2034
↨
→Take Profit 2 2029
BUY XAUUSD PRICE 2009 - 2011⚡️
↠↠ Stoploss 2005
→Take Profit 1 2016
↨
→Take Profit 2 2021
Note
➡️The Dow Jones Industrial Average gained 225 points, or nearly 1%. Those increases put the major averages on track to snap a three-day losing streak.Note
Gold rose modestly on Thursday but faced resistance around $2,030, where a downtrend line meets the 50-day moving average. Bulls will need to defend this area to avoid a potential rally towards $2,065. Conversely, if sentiment shifts in favor of sellers, support can be found at $2,005 near the 100-day moving average, with further downside pressure potentially leading to $1,990 and $1,995.Trade active
Plan SELL + 20pips🔽🔽🔽Trade active
Plan SELL + 50pips, close a part move SL to entry.🔥Note
Markets will get important inflation data next week with the release of the Core Personal Consumption Expenditures Index (PCE), which is the US central bank's preferred inflation measure. The market will also have more data on home sales and important information related to activity in the manufacturing sector.
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