XAUUSD | GOLDSPOT | New perspective | follow-up details
Updated
The price of gold surged significantly on Friday, driven by a risk-averse sentiment stemming from escalating tensions in the Red Sea. The US and the UK responded to Houthi's attack on a US ship on Thursday, prompting a surge in gold purchases as the conflict in the Middle East intensified. Additionally, the yellow metal received a boost from the decline in US Treasury bond yields, fueled by growing speculation that the US Federal Reserve would embark on aggressive rate cuts as early as March.
Simultaneously, the latest US inflation report unveiled that producer prices, or the PPI, fell below expectations, with the monthly PPI dropping by -0.1%, contrary to the anticipated 0.1% increase.
As of now, the market sentiment remains inclined towards an upward trajectory, following a rebound from the weekly lows in price action.
XAUUSD Technical Analysis:
In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities.
The $2,035 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then a continued buying pressure above this zone will serve as a platform for new highs. However, if price action drops below the $2,035 level and selling pressure persists below the zone, we could witness renewed selling pressure.
Dive into the latest Gold market dynamics! Stay informed for 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.
Simultaneously, the latest US inflation report unveiled that producer prices, or the PPI, fell below expectations, with the monthly PPI dropping by -0.1%, contrary to the anticipated 0.1% increase.
As of now, the market sentiment remains inclined towards an upward trajectory, following a rebound from the weekly lows in price action.
XAUUSD Technical Analysis:
In this video, we dissected the XAUUSD chart from a technical standpoint, analyzed the key levels, analyzed historical price moves, market behaviors, and buyer-seller dynamics, and uncovered potential trading opportunities.
The $2,035 zone will be our center stage for this week. Its historical significance makes it a crucial point. If the bullish momentum is sustained then a continued buying pressure above this zone will serve as a platform for new highs. However, if price action drops below the $2,035 level and selling pressure persists below the zone, we could witness renewed selling pressure.
Dive into the latest Gold market dynamics! Stay informed for 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
📈 The new week kicks off on a bullish note with Gold prices marking their third consecutive day of gains. The surge in the safe-haven asset can be attributed to a rise in risk aversion amid escalating geopolitical tensions in the Middle East and speculation around potential rate cuts by the Federal Reserve (Fed) in March.🌍 Heightened concerns over the Israel-Gaza conflict, compounded by the Iran-led Houthis' Red Sea attack on Monday, have intensified the demand for Gold. As a traditional safe-haven asset during geopolitical uncertainties, Gold has garnered increased attention. Market watchers are on high alert for potential disruptions in the Strait of Hormuz and closely monitoring Iran's response to recent developments.
📊 Notably, Barclays analysts, in a Friday note, expressed an expectation for the Federal Open Market Committee (FOMC) to reduce the Fed Funds rate by 25 basis points, moving the anticipated timeline from June to March. This shift in outlook has tilted market sentiment towards expectations of a Fed easing, exerting downward pressure on the US Dollar. At this juncture, the levels indicated on the 1H timeframe shall remain our guide for today's trading activities.
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📉 A sell position was triggered at the breakdown/retest of the 2,053 level, as gold prices feel the weight of downward pressure amidst an improving US Dollar (USD), fueled by robust US bond yields. Investor confidence in the USD is staging a comeback, spurred by hawkish remarks from Atlanta Federal Reserve (Fed) President Raphael Bostic over the weekend. Bostic's suggestion of potential inflation "see-sawing" in the event of premature interest rate reductions contributes to this resurgence.🌐 Simultaneously, the geopolitical turmoil between Israel and Gaza has spilled into the Red Sea, with the Iran-backed Houthi group persistently targeting maritime vessels despite recent US and UK military strikes. This development may shift the market sentiment from positive to risk aversion, potentially increasing demand for safe-haven assets.
💼 At this point, we're safeguarding the current sell position, as it doesn't confirm a sell-off just yet. Market participants are keenly observing the US NY Empire State Manufacturing Index for January and await a speech from Federal Reserve's Waller later today for fresh impetus. 📈🔍 #GoldTrading #MarketAnalysis #GeopoliticalRisk #ForexInsights
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#XAUUSDUPDATE
Two sell positions running in profit of a total of 190 pips. Its time to safeguard all positions as we look out for new trading opportunities.
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Our sell positions remain active as Gold prices faced significant losses into the Asian session. The continuous surge in demand for the US Dollar, driven by escalating Middle East geopolitical tensions and dwindling expectations for aggressive US Fed rate cuts, contributed to Gold's decline. Fed Christopher Waller's recent remarks further reinforced a reduced outlook for an early interest rate cut, maintaining elevated US Treasury bond yields and strengthening the US Dollar.The combination of diminished March rate cut expectations, geopolitical tensions, and less-than-stellar economic growth figures from China has tempered investors' interest in riskier assets. While equity markets exhibit a softer tone, the safe-haven appeal of Gold remains subdued. This scenario points towards a downward trajectory for XAU/USD.
As we navigate this landscape, the focus shifts to upcoming US macro data and speeches by influential FOMC members for potential short-term opportunities. Our strategy involves safeguarding existing sell positions while remaining vigilant for fresh trading opportunities.
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Trade closed: stop reached
#XAUUSDStop-Loss hit
Structure remains valid
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#XAUUSDSell triggered; protect positions as we look out for new trading opportunities using structures identified on the 1H timeframe.
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UPDATETrade closed manually
The sell positions from yesterday have been closed as Gold's price action breaks above the descending trendline. Despite a general pullback in the US Dollar and ongoing geopolitical tensions in the Middle East, Gold is striving to secure support just above the critical 2,006 zone. The persistent Houthi rebel attacks in the Red Sea and concerns about China's economic outlook continue to influence market sentiment, providing a backdrop of support for safe-haven assets.While a modest downturn in the US Dollar contributes to Gold's resilience, profit-taking after its recent climb to December's highest level also plays a role. The market appears to be digesting reduced expectations for an early Federal Reserve interest rate cut, following positive US Retail Sales figures that point to a robust economy. This sustains elevated US Treasury bond yields, acting as a potential limiting factor for Gold's upward momentum.
Looking ahead, key economic indicators, including Initial Jobless Claims, the Philly Fed Manufacturing Index, and housing market data, are eagerly anticipated for fresh market impetus. At this juncture, it is pertinent that we await follow-through buying signals before confirming a potential near-term bottom [reversal pattern] before considering buying potentials.
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UPDATEBuy triggered
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With a profit of over 200 pips from two buy positions, Gold price reclaims lost ground in the Asian session. The XAU/USD rebounds as the US Dollar recovery slows down, coupled with the US Treasury yield consolidating at 4.14%. Resilient US economic data and the Fed's dovish stance dampen expectations of an imminent rate cut, supported by a decrease in weekly Initial Jobless Claims to 187K and an improvement in the January Philadelphia Fed Manufacturing Survey to -10.6. Upbeat economic data favors the Fed's 'tighter-for-longer' narrative, potentially boosting the Greenback. Today, focus on the preliminary US Michigan Consumer Sentiment Index, Existing Home Sales, and speeches by FOMC members Daly and Barr for market direction. At this juncture, securing the running buy positions is reasonable, and be vigilant as the current fundamental factors may not fully support the ongoing uptrend. Happy Friday!
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