XAU/USD | GOLDSPOT | New perspective | follow-up details
Updated
In this video on XAUUSD, we delve into the recent surge in Gold prices, which soared to a new all-time high above $2,330. This bullish momentum was driven by various factors, including a robust March Nonfarm Payrolls report in the United States, which tempered expectations of an imminent rate cut by the Federal Reserve.
Gold's price movement continues to be influenced by fundamental drivers such as the US Dollar, geopolitical tensions, and physical demand. The unexpectedly strong Nonfarm Payrolls figures for March, surpassing both estimates and February's numbers, led to a decline in market expectations of a June rate cut by the Fed.
Federal Reserve Chair Jerome Powell's cautious stance on rate cuts, echoed by other Fed officials throughout the week, further contributed to this sentiment. Despite acknowledging eventual rate cuts, concerns about inflationary risks tilted towards the upside were voiced by Fed Governor Michelle Bowman and Richmond Fed President Thomas Barkin.
In our analysis, we navigate these fundamental factors to anticipate the potential trajectory of price action in the upcoming week.
XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviours, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,190 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, the appearance of a reversal pattern or a breach below the $2,190 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
#GoldMarket #SafeHavenAssets 📺🔔💼
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Gold's price movement continues to be influenced by fundamental drivers such as the US Dollar, geopolitical tensions, and physical demand. The unexpectedly strong Nonfarm Payrolls figures for March, surpassing both estimates and February's numbers, led to a decline in market expectations of a June rate cut by the Fed.
Federal Reserve Chair Jerome Powell's cautious stance on rate cuts, echoed by other Fed officials throughout the week, further contributed to this sentiment. Despite acknowledging eventual rate cuts, concerns about inflationary risks tilted towards the upside were voiced by Fed Governor Michelle Bowman and Richmond Fed President Thomas Barkin.
In our analysis, we navigate these fundamental factors to anticipate the potential trajectory of price action in the upcoming week.
XAUUSD Technical Overview:
In this video, we conducted a comprehensive analysis of the XAUUSD chart, utilizing both technical and fundamental perspectives. Our examination included an in-depth study of key levels, historical price movements, market behaviours, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,190 zone, endowed with historical significance, rendering it a pivotal level. The sustainability of bullish momentum above this zone could pave the way for continued buying pressure, potentially propelling prices to new highs. Conversely, the appearance of a reversal pattern or a breach below the $2,190 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
#GoldMarket #SafeHavenAssets 📺🔔💼
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Note
The new trading week has commenced with a potential continuation of the uptrend in Gold prices. Key factors driving this trend include expectations of future rate cuts by the Federal Reserve (Fed) in 2024 and increased buying from the Chinese central bank. However, a positive risk sentiment, fueled by reduced geopolitical tensions in the Middle East, is limiting further gains in safe-haven assets.Additionally, the upbeat US Nonfarm Payrolls (NFP) report released on Friday suggests a possible delay in Fed interest rate cuts, leading investors to revise down their expectations. This scenario supports higher US Treasury bond yields, bolstering the US Dollar and capping Gold price gains. Market participants are also awaiting the release of US consumer inflation data and the Federal Open Market Committee (FOMC) minutes on Wednesday for further insights into the Fed's monetary policy direction.
Considering these factors, we will rely on newly identified structures on the 1-hour timeframe to guide today's trading activities. We will delve deeper into this analysis during our upcoming live session this morning.
Good Morning
Note
STRUCTURAL UPDATENote
#XAUUSDA reversal set-up evolving around the $2,330 zone: right around the ascending trendline
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Gold prices continue their bullish momentum, reaching fresh all-time highs for the third consecutive day. The surge in demand comes amidst escalating geopolitical tensions, notably the conflict between Israel and Hamas.The optimism surrounding a potential ceasefire between Israel and Hamas quickly dissipates, leading to a cautious market sentiment. Consequently, investors turn to safe-haven assets, propelling further demand for gold.
Meanwhile, the flight to safety exerts downward pressure on US Treasury bond yields, keeping the US Dollar defensive. This, in turn, provides additional support to gold prices.
However, expectations of a delay in interest rate cuts by the Federal Reserve could limit the decline in US bond yields and the US Dollar. Consequently, the XAU/USD pair may face resistance amid overbought conditions on higher timeframes.
Market participants are likely to await further cues on the Fed's rate-cut path, with focus shifting to the release of US consumer inflation figures for March and the subsequent FOMC meeting minutes. These events are expected to influence near-term USD price dynamics and provide impetus to gold prices.
In the meantime, the ascending trendline on the chart remains our guide for potential trading opportunities and let's ensure to secure profits amidst the current market dynamics.
Good Morning
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Secure some more profit as the uptrend continues. Remember, the ascending trendline remains our guiding light.Trade closed manually
All buy positions closed as price action breaks the ascending trendline. A breakdown/retest of the $2,348 will welcome bearish opportunities while the breakout/retest of the $2,363.50 welcomes bullish opportunities.Note
With no active position and amidst overbought market conditions, it's crucial to evaluate our chances ahead of today's US macroeconomic data.Theoretical factors supporting a bullish outlook for Gold include expectations of rate cuts from the Fed, escalating tensions in the Middle East, and central bank purchases of Gold assets. Notably, China's continued accumulation of Gold reserves, alongside other countries like Turkey, India, Kazakhstan, and certain Eastern European nations, underscores the upward trajectory for Gold. However, it's essential to remain cautious given the overbought condition, with the ascending trendline serving as a guide for trading activities today.
Gold traders will closely monitor the release of the US Consumer Price Index (CPI) data for March and the FOMC Minutes scheduled for today. These events carry significant weight as they offer insights into the inflation trajectory and the Fed's monetary policy path. A firmer inflation reading might temper expectations for Fed rate cuts in June, potentially capping Gold's upside. Conversely, softer inflation data could fuel speculation for rate reductions, providing support to XAU/USD.
In navigating these developments, it's imperative to remain vigilant and adapt trading strategies by the levels and trendline identified on the 1H time frame in capitalizing on potential trading opportunities while managing risks effectively.
Good Morning.
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#XAUUSDAs discussed during our live session this morning.
Sell triggered as CPI data comes in beyond expectation.
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Gold prices remain under pressure after Wednesday's US Consumer Price Index (CPI) report intensified speculation that the Federal Reserve (Fed) may postpone cutting interest rates. The minutes from the March FOMC meeting indicated the US central bank might maintain higher interest rates for longer, boosting the US Dollar (USD) and constraining gold prices.However, the ongoing hawkish Fed expectations, coupled with growing concerns about the Middle East crisis may weigh on market sentiment and contribute to a cautious trading atmosphere. This sentiment is reflected in the prevailing range-bound structure on the chart between $2,348 and $2,330.
Given the current market dynamic, it is advisable to wait for a strong bearish follow-through to confirm a possible top-out in XAU/USD.
As market participants focus on upcoming US macroeconomic data, such as weekly Initial Jobless Claims and the Producer Price Index (PPI), secure your existing sell positions while monitoring the levels identified on the chart for potential new trading opportunities.
Good Morning
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With a position triggered at the break of $2,363 level; Our current buy position has accumulated over 300 pips in profit as gold prices reach a new all-time high, just shy of the $2,400 mark during the Asian session.Market participants concerns about escalating geopolitical tensions in the Middle East continue to drive demand for safe-haven assets such as gold. Additionally, expectations of interest rate cuts by major central banks this year provide further support for gold, a non-interest-bearing asset.
These factors are balancing the otherwise bullish sentiment surrounding the US Dollar, fueled by the possibility that the Federal Reserve might delay cutting interest rates. This situation suggests that gold remains on an upward trajectory, offering potential for further gains. However, overbought conditions on higher time frames and steadiness in equity markets could limit gains in XAU/USD. Considering these factors, it would be prudent to secure some profits from the existing buy position now.
Good Morning
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#XAUUSDSTRUCTURAL UPDATE
Trade active
#XAUUSDSecure some more position as price successfully breaks the $2,400 zone.
Trade closed manually
#XAUUSDAll buy positions closed in profit. Levels on the chart remain valid for new trading opportunities.
Trade active
#XAUUSDSell position triggered at the break of the $2,390.50 level; secure some profit, set your order and call it a day. Happy weekend to you!
Trade smart. Trade consciously
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