GOLD reaches price increase target, outlook remains positive
Updated
US inflation data reinforces the prospect of an interest rate cut next month. Gold prices rose more than 1% in the weekend's trading session, while safe-haven demand triggered by rising geopolitical tensions in the Middle East.
The U.S. Department of Labor reported Friday that the Producer Price Index (PPI), a measure of wholesale prices, was unchanged in September, suggesting the inflation outlook remains favorable and supporting the view that the U.S. Department of Labor The Federal Reserve will cut interest rates again next month.
The report showed that US PPI increased 0% month-on-month in September, lower than the expected 0.1%, the previous value was a 0.20% increase.
Commerzbank reported that gold ETF holdings increased by nearly 95 tons in the third quarter, meaning ETFs once again contributed positively to gold demand for the first time in 10 quarters.
This week, the market will focus on US retail sales data to determine whether consumer spending will continue to be strong.
In addition, the European Central Bank's monetary policy decisions are also the focus of market attention. Traders will need to keep an eye on (Empire State Manufacturing Survey; US Weekly Jobless Claims and Philly Fed Manufacturing Survey, as well as data on building permits and construction starts US housing on Friday.)
In summary, although the gold market may experience volatility in the short term, in the long term, the safe haven asset gold is still the main factor supporting price increases.
Including the recent reduction of interest rates by the Federal Reserve, attracting investors to choose gold as a haven, combined with the widespread war in the Middle East, has further boosted gold prices, because gold is considered an investment channel. safety, especially during difficult times. geopolitical conflict.
Going back a bit in history, in 1979, during the Soviet conflict in Afghanistan, the value of gold more than doubled during that period.
If Israel carries out retaliatory attacks against Iran, the gold price has absolutely enough basis to continue to surge even stronger. Previously, on October 1, Tehran fired about 180 missiles at Israel in retaliation for Israel's killing of Hamas and Hezbollah leaders.
Economic data to watch next week
Tuesday: Empire State Manufacturing Survey
Thursday: European Central Bank monetary policy decision, US retail sales, US weekly jobless claims: Philly Fed manufacturing survey.
Friday: Housing construction starts and construction permits in the United States
![GOLD MARKET ANALYSIS AND COMMENTARY - [Oct 14 - Oct 18]](https://s3.tradingview.com/1/18J9x3P8_mid.png)
Analysis of technical prospects for
XAUUSD
During the weekend trading session, gold achieved the target increase in the weekly issue sent to readers last week and the upward momentum was temporarily limited by the technical level of 2,660 USD.
If gold breaks above 2,660 USD, it will be eligible to continue to increase in price with the next target level after that at about 2,672 USD, more than 2,685 USD. Breaking the $2,660 level means that the price channel is also broken, while the Relative Strength Index pointing up with a significant slope reinforces the expectation of strong price increases in the near future.
As long as gold remains within the price channel and above the EMA21, the bullish outlook and the technical structure for the uptrend are unchanged, pullbacks should still only be considered short-term technical corrections.
In the coming time, the main prospective trend of gold is price increase and notable levels will be listed as follows.
Support: 2,634 – 2,630USD
Resistance: 2,660 – 2,672 – 2,685USD
SELL XAUUSD PRICE 2686 - 2684⚡️
↠↠ Stoploss 2690
→Take Profit 1 2679
↨
→Take Profit 2 2674
BUY XAUUSD PRICE 2627 - 2629⚡️
↠↠ Stoploss 2623
→Take Profit 1 2634
↨
→Take Profit 2 2639
The U.S. Department of Labor reported Friday that the Producer Price Index (PPI), a measure of wholesale prices, was unchanged in September, suggesting the inflation outlook remains favorable and supporting the view that the U.S. Department of Labor The Federal Reserve will cut interest rates again next month.
The report showed that US PPI increased 0% month-on-month in September, lower than the expected 0.1%, the previous value was a 0.20% increase.
Commerzbank reported that gold ETF holdings increased by nearly 95 tons in the third quarter, meaning ETFs once again contributed positively to gold demand for the first time in 10 quarters.
This week, the market will focus on US retail sales data to determine whether consumer spending will continue to be strong.
In addition, the European Central Bank's monetary policy decisions are also the focus of market attention. Traders will need to keep an eye on (Empire State Manufacturing Survey; US Weekly Jobless Claims and Philly Fed Manufacturing Survey, as well as data on building permits and construction starts US housing on Friday.)
In summary, although the gold market may experience volatility in the short term, in the long term, the safe haven asset gold is still the main factor supporting price increases.
Including the recent reduction of interest rates by the Federal Reserve, attracting investors to choose gold as a haven, combined with the widespread war in the Middle East, has further boosted gold prices, because gold is considered an investment channel. safety, especially during difficult times. geopolitical conflict.
Going back a bit in history, in 1979, during the Soviet conflict in Afghanistan, the value of gold more than doubled during that period.
If Israel carries out retaliatory attacks against Iran, the gold price has absolutely enough basis to continue to surge even stronger. Previously, on October 1, Tehran fired about 180 missiles at Israel in retaliation for Israel's killing of Hamas and Hezbollah leaders.
Economic data to watch next week
Tuesday: Empire State Manufacturing Survey
Thursday: European Central Bank monetary policy decision, US retail sales, US weekly jobless claims: Philly Fed manufacturing survey.
Friday: Housing construction starts and construction permits in the United States
Analysis of technical prospects for
XAUUSD During the weekend trading session, gold achieved the target increase in the weekly issue sent to readers last week and the upward momentum was temporarily limited by the technical level of 2,660 USD.
If gold breaks above 2,660 USD, it will be eligible to continue to increase in price with the next target level after that at about 2,672 USD, more than 2,685 USD. Breaking the $2,660 level means that the price channel is also broken, while the Relative Strength Index pointing up with a significant slope reinforces the expectation of strong price increases in the near future.
As long as gold remains within the price channel and above the EMA21, the bullish outlook and the technical structure for the uptrend are unchanged, pullbacks should still only be considered short-term technical corrections.
In the coming time, the main prospective trend of gold is price increase and notable levels will be listed as follows.
Support: 2,634 – 2,630USD
Resistance: 2,660 – 2,672 – 2,685USD
SELL XAUUSD PRICE 2686 - 2684⚡️
↠↠ Stoploss 2690
→Take Profit 1 2679
↨
→Take Profit 2 2674
BUY XAUUSD PRICE 2627 - 2629⚡️
↠↠ Stoploss 2623
→Take Profit 1 2634
↨
→Take Profit 2 2639
Note
- XAUUSD came under pressure last week before returning above $2,650/troy ounce. The strong recovery shows that the trend is likely to continue, especially after breaking through the channel.Note
Gold price fell below 2,647 USD/oz
Gold prices have now fallen below 2,650 USD/oz after rising above 2,666 USD/oz during the session.
Note
World gold prices fell in the trading session on Monday (October 14), when the USD hit a new 2-month peak and China's economic stimulus measures were not enough to bring confidence to investors. Forecasters maintain an optimistic view on the medium and long-term gold price outlook, including the possibility of this precious metal reaching the price mark of 3,000 USD/oz.Note
Note
The story of Europe has entered a new chapter. At the most recent meeting, the European Central Bank (ECB) seemed in no hurry to cut interest rates deeper. However, now the market is almost certain that the ECB is about to lower interest rates.Note
Gold price increased to near its peak during the session, around 2,664 USD/ozNote
Gold extended Tuesday's gain to $2,670/ozNote
Once again, the upward momentum of gold prices continues to impress. After a brief pullback near the 2,600 level, gold is staging a solid recovery since last weekend and is now at 2,674. This sees price action approaching the 2,685 peak set late last month.Trade closed: target reached
Plan SELL Hit Full TP2 + 110pips🤕🤕🤕. Congratulations everyoneNote
Gold price suddenly dropped sharply to nearly 2,670 USD/oz
Gold price suddenly dropped to 2,672 USD/oz.
Note
🔴Spot gold edged higher, setting a new all-time high at $2,686.65/ounce.Note
Gold prices hit a new record peak of around 2,690 USD/oz
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