XAUUSD | GOLDSPOT | New perspective | follow-up details

Updated

In this video, we delve into the upcoming Federal Reserve meeting and its potential impact on the price of Gold. The decisions made during this meeting could significantly influence the market. Gold recently experienced its lowest finish in about a month, influenced by stronger-than-expected monthly U.S. jobs data and reports of China's central bank pausing its bullion purchases.

China, a major driver of the gold rally, might not be done buying gold, but the current pause could signal short-term profit-taking activities. Additionally, the latest US Nonfarm Payrolls report for May revealed an increase in workforce numbers, albeit with an uptick in the Unemployment Rate and a slight rise in Average Hourly Earnings. These factors could lead the Federal Reserve to delay its decision to cut interest rates, which is negative for Gold as it raises the opportunity cost of holding a non-yielding asset.

As market participants await next week's US inflation data and the Federal Reserve’s monetary policy meeting, the US Consumer Price Index (CPI) is expected to remain steady, but a reacceleration could trigger further losses for the gold.

Join me as we dissect the latest market dynamics and explore potential strategies for positioning ourselves for the upcoming price movement

XAUUSD Technical Overview:
In this video, we take a detailed look at the XAUUSD chart, combining both technical and fundamental perspectives.

Our attention is still fixed on the key level at $2,325 for the upcoming week, historically significant and poised to steer trading dynamics. A sustained momentum above this mark could fuel further buying interest, potentially paving the way for fresh highs. Conversely, a bearish tilt below $2,325 might signal a resurgence of bearish sentiment.

Join me as we break down these factors and explore potential trading opportunities in the gold market. Don't forget to like, subscribe, and hit the notification bell to stay updated with my latest analysis and insights.

#GoldMarket #GoldInvestment #GeopoliticalImpact #InterestRates #AsianDemand #GoldETFs #MarketAnalysis #Investing #TradingTips📺🔔💼

Disclaimer Notice:
Trading in the foreign exchange market and other instruments carries high risk and may not be suitable for all investors. The content provided here is for educational purposes only. Evaluate your financial situation and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.

Note

As the new week begins, we observe a rangebound market structure with trading activities confined between $2,302 and $2,287. This reflects the prevailing uncertainty ahead of the upcoming US Consumer Price Index (CPI) data release and the Federal Reserve's interest rate decision. Currently, the market exhibits a potential bearish consolidation phase, with the path of least resistance appearing bearish. This sentiment follows the recent Non-Farm Payroll (NFP) report, which revealed that the US economy created significantly more jobs than expected in May. Consequently, investors have scaled back their expectations for a September interest rate cut by the Federal Reserve, keeping US Treasury bond yields elevated and strengthening the US Dollar (USD).

Additionally, the People’s Bank of China (PBoC) has reportedly paused its gold purchases, ending an 18-month buying spree. This development further pressures gold prices. Given these factors, market participants may seem hesitant to place aggressive directional bets ahead of this week's US consumer inflation figures and the outcome of the two-day Federal Open Market Committee (FOMC) policy meeting on Wednesday.

In light of these developments, the newly identified structure on the 1-hour timeframe will be our primary guide for today's trading activities... We shall elaborate on the market dynamic during our upcoming live session. See you soon!

Good Morning

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#XAUUSD

Buy position triggered at the break of the $2,302 level; secure position now as this move is considered to be a short-term move. Refer to our just concluded live session for ideas on managing this buy position.

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STRUCTURAL UPDATE

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#XAUUSD

Two buy position running in profit; secure position

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STRUCTURAL UPDATE | 15 Min Timeframe

All buy positions closed ahead of the Asian session as price action transitioned into a Rising Wedge pattern. We are keeping both perspectives open for new trading opportunities.

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Pressured by diminished expectations of a Fed rate cut, Gold prices have edged lower, breaking the Rising Wedge pattern identified yesterday. This sentiment has resulted in elevated US Treasury bond yields and a stronger US Dollar (USD), which, in turn, is undermining demand for gold. It is prudent to secure sell positions as traders appear hesitant to make aggressive moves ahead of the US macroeconomic data on Wednesday.

However, it is worth noting that the political uncertainty in Europe and ongoing geopolitical risks are expected to limit the downside for gold. At this juncture, it is important to note that market participants may prefer to await the latest US consumer inflation figures and the FOMC decision for further guidance on the timing of potential Fed rate cuts before making aggressive bets.

Good Morning

Note

Gold prices (XAU/USD) are struggling to build on modest gains seen on Monday, remaining in a consolidation phase that appears to be forming a downtrend continuation pattern. This movement comes ahead of the Federal Reserve's interest rate decision and the release of the US Consumer Price Index (CPI) data later today.

Despite the recent downtick, trading has been relatively subdued as market participants await the latest consumer inflation figures and the outcome of the Federal Open Market Committee (FOMC) meeting. These events are expected to offer fresh insights into the Federal Reserve's timeline for potential interest rate cuts, which will significantly influence the near-term direction of gold prices.

In our previous session, we discussed the market's recalibration of expectations for an imminent rate cut by the Federal Reserve in September. This adjustment is driven by a robust US labor market and persistently high inflation, factors that continue to bolster the US dollar's value ahead of today's critical macroeconomic announcements.

Additionally, we have identified a new structural detail on the 1-hour timeframe, which will guide our trading strategy as we approach today's pivotal events. We will delve deeper into this market dynamic during our upcoming live session. Stay tuned!

Good Morning

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As discussed during our live session this morning; the chart below refers to our new trading set-up ahead of today's US macroeconomic data.

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#XAUUSD

Revised structure

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Two buy positions triggered as CPI data comes in below market expectations. Secure position

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With over 300 pips in profit; it is time to secure some more profit as we look out for new trading opportunities.

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Secure all positions as selling pressure is observed.

Note

Gold prices (XAU/USD) faced renewed selling pressure during the Asian session, primarily due to the Federal Reserve's hawkish surprise on Wednesday. Despite softer US consumer inflation figures, the Fed's indication of only one rate cut in 2024, compared to three projected in March, has driven flows away from safe-haven assets like gold.

The Fed's revised projections have also boosted US Treasury bond yields and supported the US Dollar, further undermining gold prices. However, geopolitical tensions in the Middle East and renewed political uncertainty in Europe may help limit deeper losses.

Market participants are now focused on Thursday's US economic data, which includes the Producer Price Index (PPI) and Weekly Initial Jobless Claims. These reports could provide short-term trading opportunities.

From a technical perspective, gold's price action remains within the downtrend continuation pattern identified yesterday, suggesting the potential for further downside. However, the inability of sellers to break the $2,310 zone over the past eight hours keeps the possibility of an uptrend continuation alive. The levels on the chart remain valid for new trading opportunities today. Stay tuned for further updates!

Good Morning

Note

#XAUUSD

STRUCTURAL UPDATE | 15 Min Timeframe

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#XAUUSD

Buy position is triggered; secure position while we look out for new trading opportunity.

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#XAUUSD

Buy position triggered; secure position

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Following the closure of the buy position from yesterday's session, the price of gold closed at its lowest point in the past week, settling around the $2,300 mark. However, the market demonstrated resilience with notable buying interest observed during the Asian trading session.

Despite this, the potential upside appears restricted due to the Federal Reserve's hawkish stance on interest rates. With policymakers anticipating only one interest rate cut in 2024, this development continues to exert downward pressure on gold prices. Furthermore, a generally positive risk sentiment and a slight uptick in the US Dollar are further limiting gains for the precious metal.

Market participants are currently factoring in the increasing likelihood of the Fed commencing a rate-cutting cycle as early as September, prompted by signs of diminishing inflationary pressures in the United States. Consequently, US Treasury bond yields have dropped to their lowest levels since April, potentially constraining significant upward movements in the US Dollar and offering some support to gold prices. Geopolitical tensions in the Middle East and political uncertainty in Europe also add to the mix, advocating prudence rather than aggressive bearish positioning in XAU/USD.

In light of these developments, chart levels will guide our trading activities today. We will elaborate further on these market dynamics during our upcoming live session.

Good Morning

Trade active

Three buy positions are now active with approximately 300 pips profit; secure some profit as we look out for new trading opportunities.

Note

Below is the follow-up detail to the XAU/USD as we prepare for the new trading week [17th - 21st June 2024].

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Below is the follow-up detail to the XAU/USD as we prepare for the new trading week [24th - 28th June 2024].

darcsherry

Trade smart. Trade consciously

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XAUUSD | GOLDSPOT | New perspective | follow-up details

by darcsherry

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