XAU/USD | GOLDSPOT | New perspective | follow-up details
Updated
Gold prices take a nosedive as a buoyant US Nonfarm Payrolls (NFP) report throws a shadow of uncertainty over expectations for a Fed rate cut in May. The United States Bureau of Labor Statistics (BLS) recently released robust NFP data for January, revealing a surge in employment with 353K new hires, surpassing the consensus forecast of 180K and the 216K payrolls added in December. Despite market anticipation for a slight increase, the Unemployment Rate remained steady at 3.7%.
Adding to the market's jitters, Average Hourly Earnings exhibited a robust growth rate, surpassing expectations. The persistent strength in the inflation outlook has raised concerns among investors. The positive momentum in the labor market is anticipated to shift Federal Reserve (Fed) policymakers towards a more conservative stance, potentially leading to the extension of higher interest rates.
In the recent monetary policy statement, Fed Chair Jerome Powell emphasized the need for policymakers to gain greater confidence in the sustained return of inflation to the 2% target. This, coupled with the upbeat labor market data, has created an atmosphere of uncertainty, prompting a significant impact on gold prices.
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 behaviors, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,035 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, a breach below the $2,035 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
Immerse yourself in the latest dynamics of the Gold market! Stay well-informed to make strategic investment decisions.
#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.
Adding to the market's jitters, Average Hourly Earnings exhibited a robust growth rate, surpassing expectations. The persistent strength in the inflation outlook has raised concerns among investors. The positive momentum in the labor market is anticipated to shift Federal Reserve (Fed) policymakers towards a more conservative stance, potentially leading to the extension of higher interest rates.
In the recent monetary policy statement, Fed Chair Jerome Powell emphasized the need for policymakers to gain greater confidence in the sustained return of inflation to the 2% target. This, coupled with the upbeat labor market data, has created an atmosphere of uncertainty, prompting a significant impact on gold prices.
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 behaviors, and the interplay between buyers and sellers, aiming to unveil potential trading opportunities.
Our focal point for the week is the $2,035 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, a breach below the $2,035 level, coupled with persistent selling pressure, might signal a resurgence of bearish sentiment.
Immerse yourself in the latest dynamics of the Gold market! Stay well-informed to make strategic investment decisions.
#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
#XAUUSDPrice action has breached both the ascending trendline and the highlighted weekly key level in our recent video at the 2,035 mark, exerting selling pressure on Gold. The bearish momentum has been influenced by a shift in market sentiment, with participants dialing back expectations for a more aggressive Federal Reserve policy easing in light of stronger-than-expected NFP data. This adjustment has bolstered US Treasury bond yields, emerging as a significant factor undermining the appeal of Gold as a safe-haven asset.
Furthermore, the persistent risk of heightened geopolitical tensions in the Middle East, coupled with ongoing concerns about sluggish economic growth in China, is tempering the recent optimism seen in equity markets. This cautious backdrop may serve to mitigate the downward pressure on Gold prices.
As market participants eagerly await the release of the US ISM Services PMI later today, seeking cues for short-term opportunities, our approach will be guided by the newly identified structure on the 1-hour timeframe. This framework will serve as the beacon for today's trading activities, providing valuable insights into navigating the current market dynamics.
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#XAUUSDUPDATE
Protect sell positions
Trade closed manually
The sell position initiated yesterday has been closed as Gold continued its range-bound trading activity during the Asian session. This upward movement is influenced by a slight deterioration in global risk sentiment, a factor typically supportive of the safe-haven appeal. Additionally, a slight decrease in US Treasury bond yields is exerting pressure on the US Dollar, thereby providing further support to Gold.Market sentiment has shifted to fully discount the possibility of early interest rate cuts by the Federal Reserve following robust US macro data, indicating a resilient economy. Moreover, recent hawkish commentary from several Fed officials implies a commitment to maintaining higher interest rates for an extended period. This stance is likely to bolster US bond yields, favoring USD bulls and potentially capping the ascent of Gold prices.
Given these factors, the bearish perspective adopted yesterday remains valid as long as Gold remains below the key level around the 2,035 zone. However, any potential recovery in Gold prices will only be considered upon a clear breakout above this key level. We shall continue to monitor price action closely for further insights into market direction.
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Trade closed: stop reached
#XAUUSDSell position closed in a loss❌. Buy position triggered at the break of the week's key level @ 2,035 level
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The buy position from yesterday remains open as the Gold price continues to consolidate its rebound, while the US Dollar extends its pullback. This could be attributed to declining US Treasury bond yields and a market sentiment favoring risk, prompting increased buying interest in Gold.The recent influx of stronger US macro data, coupled with hawkish comments from several FOMC members, including Federal Reserve Chair Jerome Powell, has led investors to dial back expectations for imminent and aggressive rate cuts in 2024. This has provided support to the USD, preventing further decline. Currently, market participants appear cautious in committing to significant directional moves, opting to await further clarity on the timing of potential interest rate adjustments by the Fed, which will significantly influence market dynamics. In the meantime, attention may shift to speeches by Fed officials today for additional insights.
Good Morning
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#XAUUSDUPDATE
Protect buy position
Trade closed manually
The current bullish momentum is facing resistance as price action shows signs of a potential reversal pattern. Despite this, Gold showed some buying potential during the Asian session, taking advantage of the risk-on sentiment-driven weakness in the US Dollar, while also being supported by sluggish US Treasury bond yields.The US Dollar is struggling to attract buyers amidst expectations of an imminent shift in the Fed's policy stance. This could potentially continue to bolster Gold prices, as concerns persist over slowing economic growth in China, the world's second-largest economy. Traders appear hesitant and are opting to wait for the release of US consumer inflation figures next week, which should offer new insights into the Fed's future policy decisions and provide a meaningful push. As a result, we should exercise patience for significant signals and delve deeper into this analysis during our upcoming live session.
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#XAUUSDUPDATE
Sell triggered
Note
After securing a minimum gain of 150 pips from yesterday's sell position, the current market dynamics maintain a bearish outlook as Gold struggles to gather momentum during the Asian session. Factors contributing to this sentiment include robust US macro data, hawkish rhetoric from Federal Reserve officials, and a sustained risk-on sentiment in global equity markets. These elements collectively act as headwinds for the safe-haven asset. Furthermore, uncertainty surrounding the Fed's stance on interest rate cuts restrains market participants from making bold directional bets on Gold. As a result, investors may opt to await the release of US consumer inflation figures next week for better clarity on the Fed's potential rate adjustments in 2024. Given these conditions, our stance remains bearish as long as price action remains below the descending trendline and the 2,035 zone.Good Morning
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